Why Eurozone Services Inflation Is Running Hot in 2026

The eurozone economy is splitting in two. Manufacturing has stalled, but services inflation is running at 4.5 percent, the highest in over a decade. Lucas and Luna break down why a single haircut, hotel room, or restaurant meal is costing more across the continent, and what that means for the ECB's next rate decision. They look at the specific case of Spain, where tourism demand and wage growth in hospitality are pushing services inflation to 5.1 percent, contrasting with Germany's struggling industrial sector. With the ECB meeting this week, the hosts explain why core inflation is proving so stubborn despite lower energy prices, and why the services sector may keep rates higher for longer. This episode draws on the latest eurozone CPI breakdown, ECB commentary, and real-world examples from Lisbon, Barcelona, and Berlin. #EurozoneInflation #ServicesInflation #ECB #CoreInflation #MonetaryPolicy #SpanishEconomy #GermanManufacturing #TourismInflation #WageGrowth #CPI #InterestRates #EurozoneEconomy #Lisbon #Barcelona #Berlin #FexingoBusiness #BusinessPodcast #Economics Keep every episode free: buymeacoffee.com/fexingo