Why Eurozone Core Inflation Is Proving Stubborn

Lucas and Luna dig into the latest Eurozone inflation data for May 2026, which shows core inflation stuck at 3.3% despite a broader economic slowdown. They examine why services inflation remains sticky, the role of wage growth in the labor-intensive services sector, and how the ECB's tightening cycle may be less effective than hoped. Along the way, they reference recent comments from ECB officials and compare the situation to the US Fed's similar struggle. The episode avoids rehashing prior topics like energy shocks or southern European bonds, instead focusing on the structural drivers of persistent core inflation. #EurozoneInflation #CoreInflation #ECB #ServicesInflation #WageGrowth #MonetaryPolicy #EurozoneEconomy #InflationPersistence #LaborMarket #ECBHikingCycle #Lagarde #Schnabel #Knot #Economics #FexingoBusiness #BusinessPodcast #EuropeanEconomy #InflationData Keep every episode free: buymeacoffee.com/fexingo