EURL - Navigating Uncertainty In Inflation Markets: The European Case
Recently, a change in the measurement of one subcomponent in Europe's key inflation gauge prompted a significant recalculation in the entire index. Investors in euro area inflation-related assets now find themselves in a more uncertain environment. We believe an active, flexible portfolio approach could help.
On 22 February 2019, the German statistics office revised the methodology for calculating prices of package holidays. Despite their small weight in the Harmonised Index of Consumer Prices excluding Tobacco (HICPxT), package holidays tend to be one of the most volatile subcomponents. Subsequently, Eurostat, the statistical office of the European