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2 Jun 2015
Eurozone inflation: upside risk to forecast – Danske
FXStreet (Barcelona) - Previewing the Eurozone inflation data release, Analyst at Danske Bank, Kristoffer Kjær Lomholt, believes that upside risk exist to the 0.2%yoy expected increase in May.
Key Quotes
“Preliminary euro-area inflation is expected to increase from 0.0% y/y in April to 0.2% y/y in May but following higher-than-expected German inflation yesterday, there is some upside risk to this.”
“Core inflation is expected to rise to 0.7% y/y in May from 0.6% y/y in April.”
“It is clear that the euro area has left deflation and later this year we will see a sharp move higher as negative energy inflation turns into positive territory following the rise in the oil price. In early 2016 inflation will likely hit 1.5%. Core inflation is expected to stay below 1%, though, for the rest of the year.”
Key Quotes
“Preliminary euro-area inflation is expected to increase from 0.0% y/y in April to 0.2% y/y in May but following higher-than-expected German inflation yesterday, there is some upside risk to this.”
“Core inflation is expected to rise to 0.7% y/y in May from 0.6% y/y in April.”
“It is clear that the euro area has left deflation and later this year we will see a sharp move higher as negative energy inflation turns into positive territory following the rise in the oil price. In early 2016 inflation will likely hit 1.5%. Core inflation is expected to stay below 1%, though, for the rest of the year.”