Erste Bank Research Team
Erste Bank
Industrial production growth is expected to have returned to slightly higher levels, at around 6% y/y in November. Our view is mirrored by the consensus view that also regards the October slowdown as a temporary rather than more permanent factor. Nevertheless, reasons for some caution remain due to the volatile sentiment in the industry (both November and December marked decreases in the industrial sentiment).
Deflation is slowly getting milder, yet low oil prices coupled with the ensuing lower energy prices are still the main reason for the lack of inflationary pressures in the Euro Area. We expect a further slight improvement in December, whereby annual CPI inflation could reach -0.3% and harmonised inflation could stand at -0.2%. Core inflation is expected at 0.1% y/y.
This document is intended as an additional information source, aimed towards our customers. It is based on the best resources available to the authors at press time. The information and data sources utilised are deemed reliable, however, Erste Bank Sparkassen (CR) and affiliates do not take any responsibility for accuracy nor completeness of the information contained herein. This document is neither an offer nor an invitation to buy or sell any securities.
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