In times when inflation is extremely volatile, it’s useful to look at the month-on-month developments instead of year-on-year as we usually do. Eurostat does not provide seasonally-adjusted data to allow for monthly comparisons, so we use our own seasonal factors to estimate the most recent developments. Inflation declined month-on-month in June and July, well down from the March peak when the war in Ukraine started. At 0.6% month-on-month, this still amounts to an annualised rate of 7.2% though, clearly an unacceptable level. Monthly core inflation also remains elevated and does not yet show a declining trend. It is ... (full story)