Deutsche Bank: Core inflation rate in the Eurozone may significantly increase in the second half of 2026.

Vincent Stamer of Deutsche Bank said in a report that the increase in consumer prices in the eurozone in May was mainly driven by a surprisingly sharp rise in core inflation. He stated that inflation rates may stabilize slightly above 3%, with core inflation expected to rise significantly in the second half of the year. Surveys show that businesses are planning to pass on costs to consumers. In May, inflation rose to 3.2%, up from 3.0% a month earlier, while core inflation jumped from 2.2% to 2.5%. Stamer suggested that these may be early signs of the indirect impact of high oil prices. "National data shows that prices for items like plane tickets and other transportation have become more expensive." Stamer indicated that the European Central Bank may raise interest rates next week, followed by another hike in the third quarter.