Recent market focus has centered around European Inflation figures with Germany’s April Inflation figures released yesterday. Inflation in general rose slightly more than anticipated off the back of strong food and energy prices, initially denting investors hopes on an Interest Rate cut next month.
Consumer prices increased by 0.1% in April compared to the same period 12 months prior, however when stripping food and energy prices out, Inflation had actually fallen from 3.3% to 3%. What this shows is the difficulty that many Central Banks globally are experiencing in bringing inflation down to the preferred 2% level.