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10 Dec 2015
Euro area inflation to rise sharply in near term - Danske Bank
FXStreet (Córdoba) - According to analysts from Danske Bank, inflation is likely to rise in the near term in the Euro area keeping the European Central Bank off the trigger of more easing.
Key Quotes:
“We project a 0.9pp increase in headline inflation over the next two months, while we also expect higher core inflation. The jump in inflation is due to base effects, but should nevertheless ease the pressure on the ECB and keep it off the trigger. Our forecast is around 0.4pp above the current market pricing.”
“The inflation curve is to a very high degree driven from the front-end, hence the jump in inflation should also lift inflation pricing longer out on the curve.”
“We see value in positioning for higher inflation, as our inflation forecast is above what is priced in.”
Key Quotes:
“We project a 0.9pp increase in headline inflation over the next two months, while we also expect higher core inflation. The jump in inflation is due to base effects, but should nevertheless ease the pressure on the ECB and keep it off the trigger. Our forecast is around 0.4pp above the current market pricing.”
“The inflation curve is to a very high degree driven from the front-end, hence the jump in inflation should also lift inflation pricing longer out on the curve.”
“We see value in positioning for higher inflation, as our inflation forecast is above what is priced in.”
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