Eurozone: Core inflation to hold up at 0.9% y/y in December – TDS

FXStreet (Delhi) – Research Team at TDS, notes that January’s 0.4% y/y expected gain in headline HICP might be the best month for euro area inflation for some time.

Key Quotes

“With oil prices sharply lower, the euro appreciating somewhat in recent weeks, and momentum in core components slowing, we see risks of outright deflation for the better part of 16H1, following balanced risks around Friday’s release. Both TD and consensus see core inflation holding up at 0.9% y/y, the same as in December.”