People are fed up with inflation. What hope can you offer them? When will inflation return to 2%? Headline inflation in the euro area has come down relatively quickly after hitting a peak of 10.6% in October of last year. However, underlying inflation (which excludes volatile food and energy prices, Ed.) is more persistent and remains high, with services playing a key role due to the relatively strong impact of wage costs on inflation in these sectors. Rising food prices are also driving inflation, but we expect food inflation to fall in view of the global slowdown in agricultural commodity prices. According to our ... (full story)