Eurozone: Weak inflation data - TDS

Analysts at TD Securities note that Eurozone HICP inflation printed a tenth below consensus for headline (2.0% y/y) and core (1.0% y/y) as TDS were looking for.

Key Quotes

“This was in line with the data over the early regional data. This was a month where both base effects from a year ago and last month's anomalies from weather and vacations biased the number lower.”

“The next few months the optics start to turn around and help inflation move higher on a y/y basis, but we still think we need to wait until next year before we see a better trend in the the underlying monthly inflation pressures.”