Eurozone: It’s the day of the inflation and employment data release - Rabobank

Michael Every, Head of Financial Markets Research at Rabobank, suggests that after Germany reported an increase in its HICP to 0.5% from 0.3% in August, today the remainder of the preliminary HICP estimates gets released.

Key Quotes

“In both France and Italy HICP is expected marginally higher, which should also nudge the Eurozone HICP in the right direction. The improvements in headline inflation are mainly positive base effects, and moving core inflation in the right direction remains a challenge. Moreover, the Eurozone unemployment rate –also due today– is expected to improve only 0.1%-pt to 10.0%. These dynamics are not exactly the employment and price improvements Draghi emphasised yesterday as a prerequisite for future ECB tightening.”