MEXICO: Government Starts Anti-Dumping Probe on China Alumunium Bar Imports

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Eurozone services inflation momentum decelerated for the sixth consecutive month in January, according to the ECB’s seasonally adjusted data. Sequential price growth was 0.37% M/M (vs 0.32% prior), but 3m/3m growth eased to 2.45% (vs 2.61% prior), the lowest since September 2021.

• Analysts have questioned the reliability of the ECB’s seasonal adjustment methodology in recent months, and the uncertain nature of the January print (e.g. due to start of year price resets and weight changes) means some caution is still required when interpreting the latest data.
• However, at face value, the reading suggests ECB expectations for NSA Y/Y services readings to moderate during the course of this year remain intact.
• Details on the underlying drivers of the 3.9% Y/Y NSA services print (vs 4.0% prior) will be available in the January final HICP reading on Feb 24. President Lagarde has highlighted start of year price resets in categories like insurance as important to analyse in Q1.
• Non-energy industrial goods prices rose just 0.06% M/M SA, corresponding to a 0.59% 3m/3m rate (vs 0.44% prior).
• Together, this meant core inflation momentum eased to a 12-month low of 1.77% (vs 1.83% prior).