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30 Jun 2014
Unchanged June Eurozone inflation puts pressure on ECB to ease further - ING
FXStreet (Łódź) - Following today's Eurozone flash headline CPI release, unchanged from last month at 0.5%, Martin van Vliet from ING comments that the outcome could push the ECB to contemplate further easing at the monetary policy meeting this Thursday.
Key quotes
"The breakdown revealed that food, alcohol and tobacco inflation eased further, from 0.1% to -0.2%, but this was offset by a slight increase in energy price inflation (from 0.0% to 0.1%) and a small pick-up in the core rate."
"At 0.8%, however, core inflation remains very low - a reminder that the Eurozone economy may be just one shock away from deflation."
"Consequently, we would expect ECB President Mario Draghi to maintain a dovish tone at Thursday’s press conference, which he may use to unveil details of the TLTROs and to perhaps give an update on the progress of the preparatory work on ABS purchases."
Key quotes
"The breakdown revealed that food, alcohol and tobacco inflation eased further, from 0.1% to -0.2%, but this was offset by a slight increase in energy price inflation (from 0.0% to 0.1%) and a small pick-up in the core rate."
"At 0.8%, however, core inflation remains very low - a reminder that the Eurozone economy may be just one shock away from deflation."
"Consequently, we would expect ECB President Mario Draghi to maintain a dovish tone at Thursday’s press conference, which he may use to unveil details of the TLTROs and to perhaps give an update on the progress of the preparatory work on ABS purchases."