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Margin Call by AIB Treasury Economic Research Unit
March has seen a welcome sharp fall in headline inflation in the Eurozone
Wholesale energy prices have been in marked decline since last summer and are now below the levels that prevailed ahead of the Russian invasion of Ukraine
A recent excellent paper from the ECB (How tit-for-tat inflation can make everyone poorer) clearly demonstrates that soaring profit margins are mainly responsible for the marked pick-up in domestic inflation