Euro area consumer price inflation likely rose 1.5 pct in August – Lloyds Bank

The headline consumer price inflation has fallen back after touching 2 percent earlier in 2017. Therefore, it has yet to return to the European Central Bank’s goal on a sustained basis, noted Lloyds Bank in a research report. The headline consumer price inflation is expected to have risen 1.5 percent year-on-year in August from prior month’s print of 1.3 percent year-on-year, stated Lloyds Bank. However, this is likely to have been a function of a higher energy price base effect from a year earlier.

Meanwhile, the core measure of CPI, which strips food and energy, has indicated some tentative signs in recent months that might be edging higher. But further rises are necessary to give the European Central Bank confidence that stimulus measures could be removed. Core inflation in the currency bloc is likely to have remained at 1.2 percent year-on-year in August, added Lloyds Bank.

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