The Calm Before the Storm - This week brought glimpses of market stabilization after weeks of turmoil. Although consumers seem unfazed by the uproar, tighter credit conditions coming down the pipeline will likely weigh on growth. Meanwhile, inflation continues to advance at a stubbornly high pace, adding to the case for a 25 bps hike in May.
Sticky Eurozone Core Inflation - The Eurozone is a perfect example of how inflation can be "sticky" coming down. While headline CPI inflation has receded from its peak, core inflation, which strips out volatile components like food and energy, has continued to push higher and remains stubbornly elevated.