TD Securities discusses the Eurozone’s inflation expectations ahead of key economic data releases. The report anticipates a dip in headline inflation to 1.7% y/y, which is aligned with previous forecasts. The ECB views this as a temporary deviation, suggesting no immediate monetary policy shifts.
Inflation outlook for Eurozone
“We expect headline inflation to dip markedly to 1.7% y/y (mkt: 1.7%), but in line with what we’ve been forecasting for some time.”
“This is largely based on easing energy base effects and has already been addressed by the ECB as a temporary deviation from target that does not warrant a monetary policy shift.”
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
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