Industry Voice: The Eurozone faces an inflation rollercoaster

Prices will likely rise next year—before picking up again

clock • 2 min read
Industry Voice: The Eurozone faces an inflation rollercoaster

Rising inflation in the eurozone likely has longer to run, but we don't believe it is permanent.

Although the eurozone consumer price index (CPI) was expected to hit 1.6% in April—its highest level in two years—spare capacity in the labour market should contribute to its decline again in 2022 once the impact of one‑off factors diminishes.

Depending on the outcomes of European elections over the next 12 months, large rises in minimum wages, and the cost of brown energy, eurozone inflation could rise again significantly in 2023. Investors may wish to take this inflation rollercoaster into account when planning their medium- to long-term bond strategies.

 

 

 

Important Information

For professional clients only. Not for further distribution.

This material is being furnished for general informational purposes only. The material does not constitute or undertake to give advice of any nature, including fiduciary investment advice, and prospective investors are recommended to seek independent legal, financial and tax advice before making any investment decision. T. Rowe Price group of companies including T. Rowe Price Associates, Inc. and/or its affiliates receive revenue from T. Rowe Price investment products and services. Past performance is not a reliable indicator of future performance. The value of an investment and any income from it can go down as well as up. Investors may get back less than the amount invested.

The material does not constitute a distribution, an offer, an invitation, a personal or general recommendation or solicitation to sell or buy any securities in any jurisdiction or to conduct any particular investment activity. The material has not been reviewed by any regulatory authority in any jurisdiction.

Information and opinions presented have been obtained or derived from sources believed to be reliable and current; however, we cannot guarantee the sources' accuracy or completeness. There is no guarantee that any forecasts made will come to pass. The views contained herein are as of the date noted on the material and are subject to change without notice; these views may differ from those of other T. Rowe Price group companies and/or associates. Under no circumstances should the material, in whole or in part, be copied or redistributed without consent from T. Rowe Price.

The material is not intended for use by persons in jurisdictions which prohibit or restrict the distribution of the material and in certain countries the material is provided upon specific request.

It is not intended for distribution to retail investors in any jurisdiction.

This material is issued and approved by T. Rowe Price International Ltd, 60 Queen Victoria Street, London, EC4N 4TZ which is authorised and regulated by the UK Financial Conduct Authority. For Professional Clients only.

© 2021 T. Rowe Price. All rights reserved. T. ROWE PRICE, INVEST WITH CONFIDENCE, and the bighorn sheep design are, collectively and/or apart, trademarks or registered trademarks of T. Rowe Price Group, Inc.

Advertisement

More on Socially Responsible Investing

Industry Voice: The vital role of private assets in climate investing

Industry Voice: The vital role of private assets in climate investing

The need for investment in order to tackle climate change is greater than ever and private assets can help support positive climate solutions

Schroders Capital
clock 19 May 2022 • 1 min read
Industry Voice: SI dilemmas — is 'E' or 'S' more important?

Industry Voice: SI dilemmas — is 'E' or 'S' more important?

Sustainable investing has become mainstream, but it’s not a perfect science, with many challenges that practitioners must face.

Robeco
clock 17 May 2022 • 2 min read
The ESG meme - When responsible investing and well-known brands collide

The ESG meme - When responsible investing and well-known brands collide

Mixing younger savers with environmental, social and governance (ESG) issues conjures images of protest, divestment and social action. The reality is more complicated. We explore what happens when ESG imperatives and well-known brands come into conflict....

Rita Butler-Jones, Co-Head of DC at LGIM
clock 05 May 2022 • 5 min read
Trustpilot