On May 29, analysts at Natixis predicted that U.S. core inflation would fall below 3% by the end of 2023, while the euro zone could remain above 5%.
“We have four reasons to expect core inflation in the euro area to be significantly higher than in the United States by the end of 2023.
1. Eurozone corporate profit margins are rising, while US corporate profit margins are falling.
2. Wages in the US are slowing down slightly, while wage growth in the Eurozone is accelerating.
3. Considering the correlation between US rents and real estate prices, US rents are expected to slow down sharply, while Eurozone rents will accelerate slightly.
4. The tightness of monetary policy in the United States is greater than that in the euro zone. “