We have witnessed time and again that, after an asset inflation has developed into a major bubble, it is impossible to “soft land” the market.
According to Eurostat’s flash estimate euro area annual HICP inflation increased by 0.1 percentage points to 2.4% in February. This figure is more a snapshot than an incipient violation of the ECB’s medium- termoriented definition of price stability, – namely of inflation below but close to 2% –, but there is no room for complacency.