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.”
“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.”
The shared currency is unfazed by the above findings, with EUR/USD trading at 0.9807, up 0.21% on the day.