Tag Archives: HICP inflation

Euro area headline inflation declined by a larger margin than expected. Our main explanation is related to statistical effects.Euro area headline inflation declined for the first time in almost a year, by a larger margin than expected by the consensus. Headline HICP eased to 1.5% in March, from 2.0% in February, while core HICP inflation (excluding energy, food, alcohol and tobacco) dropped to a two-year low of 0.67% y-o-y, from 0.86% in February. The harmonised inflation rate dropped by...

Nonetheless, the acceleration in headline figures in December masks subdued core inflation. We believe weak core prices will mean the rise in headline inflation will soon stall.Euro area flash HICP inflation rose from 0.6% in November to 1.1% year on year (y-o-y) in December, while core inflation increased slightly to 0.9%, both above consensus expectations. The breakdown by components showed that the main driver of the increase was energy prices.In the next few months, euro area inflation...

Macroview Headline inflation in the euro area doubled in September as the impact of weaker energy prices declined, but core inflation was stable. As expected, euro area flash HICP inflation rose to 0.4% year on year (y-o-y) in September, from 0.2% in August as the impact of weak energy prices continued to fade. But measures of core inflation were slightly weaker than expected, remaining stable at 0.8% y-o-y against expectations of a small rise.Weaker industrial goods inflation in particular...