The French National Institute of Statistics and Economic Studies (INSEE) has released the preliminary data for the September consumer price index (CPI). The data show that France’s September CPI decreased by 0.3% month-on-month. Although this is a slowdown compared with the previous month’s 0.70% increase, the decline is clearly smaller than the broad market expectation of -0.6%.
This indicates that downward pressure on inflation remains substantial, and price stickiness is greater than expected. Since the cooling pace of inflation is not as anticipated, it suggests that price pressures in Europe’s major economies have not been quickly relieved. The market’s earlier optimistic assumptions that inflation would be rapidly brought under control may have been premature.
In macro financial markets, the slower-than-expected decline in inflation adds more constraints for the European Central Bank when formulating accommodative policy. Bond yields may remain at relatively elevated levels, and the delay in expectations for easier liquidity will also create meaningful downward pressure on the valuation of risk assets.
For the crypto market, global concerns about inflation are unlikely to fade quickly, meaning macro liquidity may not see a strong turning point soon. In an environment where risk premia rise and funding conditions remain tight, cryptocurrencies such as $BTC may continue to face pressure. Investors should be mindful of the risk of further valuation pullbacks.
#Inflation #MacroEconomics #EuropeCPI
This indicates that downward pressure on inflation remains substantial, and price stickiness is greater than expected. Since the cooling pace of inflation is not as anticipated, it suggests that price pressures in Europe’s major economies have not been quickly relieved. The market’s earlier optimistic assumptions that inflation would be rapidly brought under control may have been premature.
In macro financial markets, the slower-than-expected decline in inflation adds more constraints for the European Central Bank when formulating accommodative policy. Bond yields may remain at relatively elevated levels, and the delay in expectations for easier liquidity will also create meaningful downward pressure on the valuation of risk assets.
For the crypto market, global concerns about inflation are unlikely to fade quickly, meaning macro liquidity may not see a strong turning point soon. In an environment where risk premia rise and funding conditions remain tight, cryptocurrencies such as $BTC may continue to face pressure. Investors should be mindful of the risk of further valuation pullbacks.
#Inflation #MacroEconomics #EuropeCPI