ECB: Underlying inflation may have peaked

Underlying inflation in the euro zone may have peaked, the European Central Bank said on Friday, suggesting that growth in other prices is also slowing.

The latest news is likely to cement expectations that the ECB will stop raising interest rates for a ninth time in a row in September, as underlying inflation filters out the most volatile prices and is closely watched by euro zone central bankers.

“Median and mean indicators suggest that underlying inflation is likely to peak in the first half of 2023,” the ECB said in a note published on Friday.

The ECB added that most of the core inflation measures it watches show signs of slowing.