"The figures reinforce the view that interest rates have likely reached their peak in the current tightening cycle." The inflation drop was broad-based, with all price categories growing at a slower pace and energy prices falling outright for a fifth consecutive month. Euro zone inflation briefly hit double digit last autumn amid a combination of soaring energy costs, post-pandemic snags in supply chains and high government spending. So far, the ECB is sticking to its expectations of an economic rebound next year, partly thanks to higher real wages as inflation falls. "The rise in interest rates has been much quicker than in previous times so looking to the past as a model may mislead," Schumacher added.

---

Persons: Diego Iscaro, Dirk Schumacher, Schumacher, Francesco Canepa, Toby Chopra Organizations: Central, ECB, P Global Market Intelligence, Thomson Locations: FRANKFURT, Germany, China