Moody's Talks - Inside Economics It’s the Final Countdown
Jan 17, 2025
Cosimo Pacciani, Head of Research for Poste Italiane, and Gaurav Ganguly, Chief EMEA economist at Moody's Analytics, dive into the economic implications of recent U.S. political events on Europe. They discuss inflation trends and the ripple effects on European politics, spotlighting how rising prices are impacting voter behavior. The conversation also touches on the Eurozone's trade surplus with the U.S. and the cultural shifts affecting market dynamics. The episode concludes with insights on revitalizing European competitiveness amid geopolitical challenges.
AI Snips
Chapters
Transcript
Episode notes
Inflation Report Summary
- Headline CPI increased, driven by energy prices, but core CPI decreased, suggesting underlying inflation is cooling.
- Shelter disinflation is contributing to the decline in core CPI, and this trend is expected to continue.
European Inflation Trends
- European inflation follows a similar trend to the US, with targets remaining above 2%.
- Energy price increases and resilient consumption contribute to persistent inflation.
Inflation and European Elections
- Inflation significantly impacts European elections, similar to the US.
- Populist parties exploit inflation concerns, despite the understanding that recent inflation was largely supply-driven.