by Wolf Richter
Wolf Street
Lagarde frets over surging labor costs feeding into services inflation.
In the 20 countries that use the euro, inflation in services increased again by 4.1%, same increase as in May – and both were the highest since October. The service CPI has gotten stuck at around 4% year-over-year for the eighth month in a row, after coming down substantially to that point.
On a month-to-month basis, services CPI jumped by 7.4% annualized and has been in that range and higher over the past five months. These super-volatile and highly seasonal month-to-month readings tend to be red-hot in the first half of the year and then fall later in the year.