Back
26 Jan 2015
Data ahead: Eurozone CPI expected to fall – BBH
FXStreet (Barcelona) - The Brown Brothers Harriman Team previews the Eurozone CPI data to be released later this week, anticipating it to register a negative print at -0.5%.
Key Quotes
“The January flash CPI report will give a taste of the challenge of the ECB's efforts to put prices back on track to reach its target of near, but below 2% on the headline rate. By simply deciding that its target is really the core rate, some pressure would be alleviated. Egos and inertia, more than economic rationality, lies behind the reluctance. Deflation is likely to have intensified.”
“January CPI is expected to have fallen to -0.5% from -0.2% in December. The core rate is expected to be unchanged at 0.7%; low but not deflation. The ECB model projects its asset purchases will push CPI up by 0.4% this year and 0.3% next.”
Key Quotes
“The January flash CPI report will give a taste of the challenge of the ECB's efforts to put prices back on track to reach its target of near, but below 2% on the headline rate. By simply deciding that its target is really the core rate, some pressure would be alleviated. Egos and inertia, more than economic rationality, lies behind the reluctance. Deflation is likely to have intensified.”
“January CPI is expected to have fallen to -0.5% from -0.2% in December. The core rate is expected to be unchanged at 0.7%; low but not deflation. The ECB model projects its asset purchases will push CPI up by 0.4% this year and 0.3% next.”