A new report from Swiss Re Institute states that Euro area inflation pressure is broadening out and becoming “stickier”, as core Consumer Price Index (CPI) rises to a new multi-decade high.
The current inflation surge is also increasing claims severity for European property and casualty (P&C) insurers, particularly in property and motor insurance.
The report notes that while Euro area aggregate core CPI inflation, which excludes volatile energy and food prices, may only be roughly half the level of other advanced economies, 3.5% y-o-y as of April, versus 6.2% y-o-y in the US and UK, is still at a multi-decade high and shows signs of intensifying.
