Inflation topped estimates and surged to an all-time high of 10.7% from a year ago. Meanwhile GDP slowed down to 0.2% in the third-quarter which is significantly less than the 0.8% in the second-quarter. Following this inflation print European bonds edged lower and the euro dropped 0.3% against the dollar. For the Euro-area this presents a hazardous outlook where a combination of surging inflation and a slowdown in the economy underscores an imminent probability of a recession. Increasing energy costs brought on by tensions in Ukraine continues to drive headline inflation higher and could deliver a fresh blow to consumers as we transition into the winter season. Stronger supplies of natural gas may help alleviate the pain but the trajectory of future supply and Russia’s war in Ukraine still pose a risk. Amongst these treacherous conditions controlling inflation continues to be a priority for the ECB with their latest 0.75% rate hike delivered last week.