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
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