TD Securities reports on Eurozone inflation, which has dropped to 1.7% year-on-year, primarily due to energy prices. The analysis indicates that this disinflationary trend is not expected to influence the ECB’s upcoming meeting, as it has been anticipated. The core inflation measure also slowed, suggesting a broader easing in price pressures.
Eurozone inflation insights
“Euro area inflation dropped as expected to 1.7% y/y on headline measure.”
“As we discussed previously, the biggest contributor to this disinflationary pace was energy at -4.1% y/y, predominantly on the back of base effects.”
“This will not move the ECB off its perch at their meeting on Thursday, nor should it feature in the statement given that this move has been anticipated and explained in the past.”
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