Eurozone: Focus on inflation figures – Danske Bank

In view of analysts at Danske Bank, today’s focus remains on euro area inflation in August.

Key Quotes

“Yesterday's German and Spanish figures were both higher than expected but the upside surprise was driven mainly by energy price inflation and the higher inflation should not alter the ECB's current view on its monetary policy strategy. We have revised our euro area headline inflation forecast slightly higher to 1.5% y/y in August but still believe core inflation will move in the opposite direction and decline to 1.1% y/y in August. As we have argued previously, the stronger euro will become a headwind to inflation in 2018 and 2019.”