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2 Jun 2015
Euroarea core inflation expected at 1.0%yoy by end-2015 – Danske
FXStreet (Barcelona) - Senior Analyst at Danske Bank, Pernille Bomholdt Nielsen, reviews the Eurozone inflation data release and further expects the core inflation to end 2015 at 1.0%yoy.
Key Quotes
“Euro-area HICP inflation increased to 0.3% y/y in May from 0.0% y/y in April. The biggest surprise was an increase in core inflation to 0.9% y/y in May from 0.6% y/y in April (consensus 0.7% y/y).”
“The data today confirm that the euro area has exited deflation. It seems likely that headline inflation will increase above 1.5% y/y in January 2016.”
“The surprisingly higher core inflation followed as both service price inflation increased (around 60% of core inflation) and as inflation in non-energy industrial goods was higher (around 40% of core inflation).”
“We look for core inflation around 1.0% y/y at the end of the year but we expect it to decline a bit again in May.”
Key Quotes
“Euro-area HICP inflation increased to 0.3% y/y in May from 0.0% y/y in April. The biggest surprise was an increase in core inflation to 0.9% y/y in May from 0.6% y/y in April (consensus 0.7% y/y).”
“The data today confirm that the euro area has exited deflation. It seems likely that headline inflation will increase above 1.5% y/y in January 2016.”
“The surprisingly higher core inflation followed as both service price inflation increased (around 60% of core inflation) and as inflation in non-energy industrial goods was higher (around 40% of core inflation).”
“We look for core inflation around 1.0% y/y at the end of the year but we expect it to decline a bit again in May.”