📊Inflation Monitor: Europe Overshoots By 6.6 Percentage Points

• We have seen the June consumer prices batch for our G10 inflation monitor, Q2 Australian figures were dropped last night

• The chart below shows each central bank's preferred inflation metric vs its price target, actual figure is shown in dots. We can note that the U.K. overshoots the most in our list, Sweden and EU follow, the latter stands 6.6pp above the ECB's target

• Japan and Switzerland continue to lag, however, they have turned above target for some time, something we could not say a couple of months back. Japan headline prices eased to 2.4% Y/y, Switzerland CPI accelerated to 3.4% Y/y. Despite the relative low rate, these central banks have not seen this level of overshooting in some time

• To conclude, this chart can be interpreted as how far behind the curve a central bank is relative to its own inflation benchmark