Eurozone: Inflation numbers flying high – HSBC

Sandeep Kanihama FXStreet Contributor

Fabio Balboni, European Economist at HSBC, notes that the Eurozone inflation came in stronger than market expected, rising back to 1.9% in April (consensus: 1.8%), from 1.5% y-o-y in March while the core inflation was also stronger, at 1.2%, and services inflation shot up to 1.8%, its highest since March 2013.

Key Quotes

“The timing of Easter is causing some of the volatility and from now on we should see a clearer picture. We expect inflation to ease again over the next couple of months and stabilise around 1.6-1.7% in the second half of the year. Against this background, although pressure for tapering might intensify after latest print, we don't expect any changes in QE and key policy interest rates.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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