“Inflation Forecast: Natixis Predicts Faster Fall in US than Europe”

Investing.com – In a note published on Monday, analysts at Natixis (NYSE:) estimated that inflation will fall much faster in the United States than in the euro zone, explaining that the reasons for this asymmetry between inflation dynamics in the United States and in the euro zone.

“Inflation excluding energy and food can be expected to fall below 3% in the United States by the end of 2023, while it will probably still be above 5% in the euro zone” have they indeed announced.

The bank further explained that it has identified four reasons to expect inflation excluding energy and food to be significantly higher in the eurozone than in the United States at the end of 2023:

1. The increase in profit margins for companies in the euro zone, while they are shrinking in the United States.
2. The slight slowdown in wages in the United States, while they are accelerating in the euro zone.
3. The expected drastic slowdown in rents in the United States, given their correlation with real estate prices, while they are accelerating slightly in the euro zone.
4. More restrictive monetary policy in the United States than in the euro zone.

If this is confirmed, this could contribute to a better performance of the US markets than of the European markets over the next few months, and also to a fall in currencies quoted against the dollar, on Forex.