Eurozone: HICP inflation figure expected to print 2.0% y/y – Danske Bank

According to the analysts at Danske Bank, the inflation figures in Germany, France, Italy and Spain point to an increase in the euro area HICP inflation figure due today of 0.2pp, which is slightly higher than their and consensus expectations of an increase from 1.8% to 1.9%.

Key Quotes

“We lift our forecast to 2.0% y/y given the country figures where the driver behind the higher inflation seems to be higher-than-expected food price inflation. We still see some downside risk to the forecast as the 1.8% y/y print in January was low when looking at the unrounded figure.”

“February has seen DKK climb to its highest levels against EUR since Lars Rohde began as governor of Danmarks Nationalbank (DN) in 2013, so the market will be keeping a particularly close eye on whether this has prompted the central bank to sell DKK in FX intervention when February's FX reserve data is published today.”