Euro area: No visible signs of improvement in inflation - ANZ

Research Team at ANZ, notes that the harmonised euro area CPI came in a touch stronger than expected (+0.2% vs expectations of +0.1%) while the core inflation was unchanged on the month at +0.9% y/y.

Key Quotes

“Services inflation (44% of the index) rose to 1.2% y/y, and non-energy industrial goods inflation was unchanged at 0.4%. Food, alcohol, and tobacco prices rose 1.4% y/y (0.9%) as seasonal factors pushed up food prices.

Overall, there was little in the data to suggest that inflation is improving, and the latest slide in oil prices will act as a headwind in the near term. The bias at the ECB will remain tilted towards additional easing.”