The ECB is behind the curve as Eurozone data shows inflation surging to 3.2% while unemployment remains at secular lows, signaling a policy error that could force a hawkish pivot. For markets, this implies upward pressure on Eurozone bond yields and a potential tailwind for the euro, but the truncated article offers no actionable trade recommendations.
•Eurozone headline inflation has surged to 3.2%.
•Unemployment is stable at secular lows, indicating a tight labor market.
•The author argues the ECB is behind the curve, drawing a parallel to Jean-Claude Trichet's era of policy mistakes.