In its latest study published on Friday, the European Central Bank (ECB) said, “surging consumer demand across the eurozone is playing an increasing role in excessive inflation.”
Additional takeaways
“Some policymakers have feared – price pressures are becoming more entrenched.”
"Over recent months, supply and demand factors have played broadly similar roles in (underlying) inflation.”
"More recently the contributions of predominantly demand-driven components to services inflation have outweighed those of predominantly supply-driven components.”
Market reaction
The shared currency is unfazed by the above findings, with EUR/USD trading at 0.9807, up 0.21% on the day.
