Why Eurozone Services Inflation Is Sticking Around

The ECB has cut rates three times in 2026, but services inflation remains stubbornly above 4 percent. Lucas and Luna drill into why — from the hotel price spiral in Southern Europe to wage catch-up in Germany. They cite the latest PMI data showing services input costs accelerating even as manufacturing cools. Spain's tourism boom is pushing up prices across the bloc, and the ECB's preferred measure of domestic inflation, the HICP excluding energy and food, is still running hot. The hosts also discuss how the Iran conflict is adding to energy costs, which indirectly feeds into services. A concrete look at the structural forces keeping European inflation stickier than the central bank would like. #EurozoneInflation #ServicesInflation #ECB #EuropeanCentralBank #InflationPersistence #SpainTourism #PMI #HICP #WageGrowth #EnergyShock #IranWar #MonetaryPolicy #Economics #BusinessPodcast #FexingoBusiness #TheEuropeanEconomyPodcast #LucasAndLuna #PodcastEpisode Keep every episode free: buymeacoffee.com/fexingo