FXStreet (Delhi) – Research Team at TDS, notes that the flash euro area CPI estimate showed headline inflation of 0.4% y/y in January as expected and core of 1.0% y/y, a tick stronger than what we and markets were expecting.
Key Quotes
“The non-energy industrialised goods category gained momentum, moving from 0.5% y/y to 0.7% y/y, while services inflation also moved up a tick to 1.2% y/y. Despite the small upside surprise on core inflation, this is likely the strongest headline reading we’ll see in a while, with renewed oil pressures likely to weigh on the yearly inflation number starting in February. In fact, based on the ECB’s December inflation forecast updated with recent oil futures prices, it looks like we could be in for negative inflation for much of the first half of 2016.”
(Market News Provided by FXstreet)