UK and Eurozone inflation in focus today – Danske Bank

In the euro area, the final HICP figures for March are due out and will be a key economic release for today’s session along with UK CPI data, according to analysts at Danske Bank.

Key Quotes

“The initial prints surprised on the downside, where non-energy industrial goods in particular were a drag on core inflation. The details will show whether the weak core figure was a result of the lagged impact of the euro appreciation or one-off factors with less concern for the ECB.”

“UK inflation data for March is also on the agenda. We estimate CPI inflation was unchanged at 2.7% y/y in March (but lower second decimal), while core CPI inflation may have risen to 2.5% from 2.4%. Our base case is still that CPI inflation will move lower this year, as food price inflation has peaked, energy prices are stabilising and the impact of past GBP depreciation is fading.”