Danske Bank: Euro Inflation to increase sharply this year
Quotes from Danske Bank Euro inflation surprised on the upside in February and consequently we revise our forecast for 2015 up and into positive territory. The upward revision is driven by higher energy and food price in…
Euro inflation surprised on the upside in February and consequently we revise our forecast for 2015 up and into positive territory.
The upward revision is driven by higher energy and food price inflation. Historically, commodity prices have explained most of the variation in inflation.
At the end of 2015 we expect inflation to increase sharply as there is a positive base effect from the decline in the oil price in 2014. Although headline inflation is set to increase we forecast core inflation will stay below 1.0% during 2015 and we look for a new historical low of 0.5% in April.
The ECB's QE programme reduces headwind to inflation through a weaker currency, but changes in commodity prices have a larger impact on inflation.
We still expect the euro area to remain in deflation during H1, but at the end of the year it should rise sharply as there is a positive base effect from the large drop in the oil price at end-2014.
Gold prices edged lower on Monday as stronger-than-expected U.S. nonfarm payrolls data dampened hopes for aggressive Federal Reserve rate cuts, bolstering the dollar. Spot gold slipped 0.1% to $2,686.32 an ounce, while F…
On-chain data shows BTC whales moved 10000 BTC from Crypto exchanges. This indicate accumulation of BTC by whales. Japanese public company Metaplanet buys another 1 billion yen worth of Bitcoin. According to Santiment, t…
Personal income increased by 0.2% month over month In August, which was less than the 0.4% market forecast and less than the 0.3% growth in July. For the third consecutive month, real personal disposable income increased…
