Euro area flash CPI estimates came in higher than expected

The Euro area flash CPI estimates came in higher than expected. Headline CPI grew 0.3% m/m (cons: 0.2%) on higher oil prices lately. More encouraging, is that after stripping out the volatile energy component, core CPI rose 0.9% y/y (cons: 0.7%). 

RBC Capital Markets notes:

• We nevertheless expect headline inflation to remain well below 1.0% for most of the remainder of the year.
  
  
• For the ECB meeting tonight, we see policy as largely on 'cruise control' for now, as the Bank continues to assess the impact of measures earlier this year on the market and real economy. 
  
  
• For the Eurosystem staff projections this month, we think the baseline will remain broadly unchanged, with potentially only a slight upward revision to near-term inflation projections.