- Prior +2.3%
- Core CPI +2.4% vs +2.5% y/y expected
- Prior +2.6%
The drop in core annual inflation is the main thing here and this definitely bolsters chances for the ECB to cut rates later this month. The market pricing shows a ~76% probability and we'll just need to wait out the tariffs situation in the next week before policymakers should start to firm up the narrative.
