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2 Jun 2015
Eurozone inflation expected to beat consensus – KBC
FXStreet (Barcelona) - The KBC Bank Research Team believes that risks for Eurozone HICP inflation remain tilted to the upside of consensus expectations.
Key Quotes
“After having turned marginally positive in April, euro zone HICP inflation is expected to extend its uptrend in May. The consensus is looking for an increase from 0.0% Y/Y to 0.2% Y/Y. After upward surprises in Italy, Spain and Germany, we believe that the risks for the euro zone reading too are on the upside of expectations.”
“The early timing of Easter depressed prices of several seasonal goods in April, but a pick-up might follow again in May.”
“The core CPI is expected to increase slightly too, from its record low of 0.6% Y/Y to 0.7% Y/Y. For the core reading we believe that an upward surprise is not excluded.”
Key Quotes
“After having turned marginally positive in April, euro zone HICP inflation is expected to extend its uptrend in May. The consensus is looking for an increase from 0.0% Y/Y to 0.2% Y/Y. After upward surprises in Italy, Spain and Germany, we believe that the risks for the euro zone reading too are on the upside of expectations.”
“The early timing of Easter depressed prices of several seasonal goods in April, but a pick-up might follow again in May.”
“The core CPI is expected to increase slightly too, from its record low of 0.6% Y/Y to 0.7% Y/Y. For the core reading we believe that an upward surprise is not excluded.”