Eurozone: Modest disappointment in flash inflation – Nordea

Sandeep Kanihama FXStreet Contributor

Anders Svendsen, analyst at Nordea Markets, notes that the Eurozone’s core inflation remained unchanged in August, according to the flash estimate, contrary to expectations of a small increase.

Key Quotes

“In any case, core inflation is way too low for the ECB and can easily justify a big September easing package.”

“Euro-area headline inflation came in at 1.0% y/y in August (consensus: 1.0%, July: 1.1%), while core inflation was a little lower at 0.9% y/y (consensus: 1.0%, July: 0.9%).”

“The numbers do not change our view that the ECB will deliver a big easing package in September (10 bp cut, QE & more dovish forward guidance), and the risk is also tilted toward more easing down the road. Market reaction is very muted.”

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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