Cyrus de la Rubia Comments on Eurozone PMI

Cyrus de la Rubia, Chief Economist of Hamburg Commerzbank, commented on the Eurozone PMI:

Price pressures in the services sector, which the ECB is particularly concerned about, have eased, but by historical standards, input costs are still rising strongly, and service companies are still able to expand At least some of the cost increases, some of which are due to rising wages, are passed on to end consumers.
This is reflected in persistently high core inflation, which is why the ECB is likely to continue raising policy rates.