Eurozone flash inflation reports likely to shed their negative handles - TDS

Research Team at TDS, suggests that oil prices have risen faster than they expected, so euro area flash inflation reports will likely shed their negative handles, with flat or even small positive prints expected in Germany, France, and the euro area.

Key Quotes

“Core inflation likely ticked up a notch to 0.9% y/y. At best, if current energy prices are sustained, inflation should remain around 0.0% y/y over the next few months, reinforcing our view that the ECB set a very low hurdle for upside inflation surprises in their recent forecast.”