"Eurozone inflation dropped to 1.7% in January, matching consensus expectations and more importantly, undershooting the European Central Bank's (ECB) 2% target. The decline was primarily driven by stronger deflation in energy prices. Core inflation - which strips out volatile food and energy prices - proved stickier however, edging down only marginally from 2.3% to 2.2%. With underlying price dynamics largely unchanged, the ECB has little reason to deviate from its current wait-and-see approach."
"The decline was primarily driven by stronger deflation in energy prices. Core inflation - which strips out volatile food and energy prices - proved stickier however, edging down only marginally from 2.3% to 2.2%. With underlying price dynamics largely unchanged, the ECB has little reason to deviate from its current wait-and-see approach. As such, Cebr expects the Governing Council to leave key interest rates unchanged at tomorrow's meeting."
Eurozone inflation dropped to 1.7% in January, matching consensus expectations and undershooting the European Central Bank's 2% target. The decline resulted mainly from stronger deflation in energy prices, which pulled headline inflation lower. Core inflation, excluding volatile food and energy components, eased only marginally from 2.3% to 2.2%, indicating persistent underlying price pressures. With underlying price dynamics largely unchanged, the European Central Bank has limited justification to alter its current wait-and-see stance. Market expectations anticipate that the Governing Council will maintain key interest rates unchanged at the upcoming meeting.
Read at London Business News | Londonlovesbusiness.com
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