Irish wholesale prices and strengthening eurozone fuel ECB rate hike fears

Economist Jim Power said the signs from the European Central Bank point to further rate increases, as the recent turmoil that hit global banking eases

Central Bank governor Gabriel Makhlouf said in a speech it was too early for the European Central Bank to pause its rapid rate-tightening cycle given the significant challenges to price stability Europe’s economy is facing.

New figures for Irish wholesale prices and eurozone-wide data point to significant inflation pressures coming down the line to households and businesses, raising the risk the European Central Bank will continue increasing interest rates higher than once thought, experts said.          

The Central Statistics Office figures appear to confirm a Europe-wide picture that underlying inflation remains sticky, despite hefty falls in the price of energy in recent months.