Inflation releases in Germany and the US this week highlighted how price pressures are still weaker in the euro-zone. Next week, we will get the full breakdown of euro-zone inflation in October, which will give us more detail on the drivers of the increase in core inflation. Meanwhile, other data next week should confirm that that euro-zone GDP grew by 2.2% in Q3, but with daily Covid infections now having risen to the highest level since April, and showing little sign of slowing, there is evidence that consumers are becoming more cautious.
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