Latest / The European Economy Podcast with Fexingo: ECB, Eurozone, and Continental Markets
Eurozone Inflation Is Sticky Where the ECB Cant Reach
Eurozone headline inflation has cooled — but core services inflation in France and Spain is running above 4 percent. Lucas and Luna examine why the ECB's transmission mechanism is breaking down in services, how the pass-through from higher wages to prices is now structural rather than cyclical, and what that means for Lagarde's next policy decision. They ground the conversation in the latest May 2026 data, including a trade-weighted dollar at 119.3 and EUR/USD at 1.16, and compare the euro area's dilemma to Japan's experience with sticky services inflation in the 1990s…
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