ECB's September projection of core inflation rise in 2016 at risk?

Euro zone's November underlying price momentum, which is based on inflation rate without the volatile prices for energy, food, alcohol and tobacco declined to 0.9% again.

This brings in a risk of unlikeliness in the ECB's September projection of rise in core inflation to 1.4% in 2016. The devaluation- induced rise in import prices mainly caused the somewhat higher core inflation in recent months, this effect is diminishing gradually.

"We expect the ECB to revise down its medium-term projections tomorrow and further loosen monetary policy", says Commerzbank in a research note.