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5 Jan 2016
Eurozone HICP inflation forecast for December down to 0.3% y/y from 0.5% y/y – Danske Bank
FXStreet (Delhi) – Research Team at Danske Bank, suggests that based on the lower German HICP inflation figure, they have revised their euro HICP inflation forecast for December down to 0.3% y/y (from 0.5% y/y) and still up from 0.2% y/y in November.
Key Quotes
“The downward revision reflects that we had expected food prices to increase, while we also expected a smaller impact from the oil price decline, as gasoline prices have remained somewhat resilient to the latest oil price decline. Our lower euro HICP inflation forecast also follows as the Spanish figure, which was released last week, was weaker than expected despite an increase of 0.3pp.”
“Financial markets will keep an eye on the rising tensions between Saudi Arabia and Iran, which could raise concerns about a potential oil supply disruption.”
Key Quotes
“The downward revision reflects that we had expected food prices to increase, while we also expected a smaller impact from the oil price decline, as gasoline prices have remained somewhat resilient to the latest oil price decline. Our lower euro HICP inflation forecast also follows as the Spanish figure, which was released last week, was weaker than expected despite an increase of 0.3pp.”
“Financial markets will keep an eye on the rising tensions between Saudi Arabia and Iran, which could raise concerns about a potential oil supply disruption.”