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26 Feb 2016
Eurozone: Flash CPIs confirmed downside risks - TDS
Research Team at TDS, notes that the Flash February CPIs for France, Spain, and many German states confirmed their expectations of downside risks, showing a significant deceleration in annual inflation.
Key Quotes
“French HICP disappointed, going back into negative territory (-0.1% y/y), while Spanish HICP inflation fell to -0.9% y/y. The German regional prints released so far also all show a decline in the pace of inflation, and suggest that this afternoon’s German national HICP flash estimate could come in around (or even weaker than) our anticipated -0.1% y/y growth (consensus: +0.0% y/y).
Weak energy prices are the dominant theme in these releases, as petrol prices fell in Feb this year against an increase last year, but inflation ex-energy seems to be slowing somewhat as well.”
Key Quotes
“French HICP disappointed, going back into negative territory (-0.1% y/y), while Spanish HICP inflation fell to -0.9% y/y. The German regional prints released so far also all show a decline in the pace of inflation, and suggest that this afternoon’s German national HICP flash estimate could come in around (or even weaker than) our anticipated -0.1% y/y growth (consensus: +0.0% y/y).
Weak energy prices are the dominant theme in these releases, as petrol prices fell in Feb this year against an increase last year, but inflation ex-energy seems to be slowing somewhat as well.”