WS #15746
German inflation has risen to 3.3%, the highest level since late 2023, driven primarily by energy prices linked to Middle East tensions. The IMF has upgraded the UK's 2026 growth forecast to 1.3% but cautioned that inflation will fall more slowly than expected, reaching 2.7%. These macro indicators suggest that European central banks may face a prolonged period of sticky inflation, limiting monetary easing and pressuring consumer discretionary sectors.
European Inflation & Macro
German inflation has risen to 3.3%, the highest level since late 2023, driven primarily by energy prices linked to Middle East tensions. The IMF has upgraded the UK's 2026 growth forecast to 1.3% but cautioned that inflation will fall more slowly than expected, reaching 2.7%. These macro indicators suggest that European central banks may face a prolonged period of sticky inflation, limiting monetary easing and pressuring consumer discretionary sectors.