Seeking Fair Value
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Euro area flash inflation: Gradually towards the target
Euro-area inflation slowed down in January but less than expected. The downward profile in inflation numbers is expected to continue and we forecast the ECB to start cutting rates in June. Euro-area headline inflation slowed down but only gradually and less than expected in January to 2.8% (consensus 2,7%, 2.9% in December). Food price inflation continued to decline but the negative contribution from energy prices became slightly smaller. Also core inflation declined only marginally to 3.3% in January (Consensus 3.2%, December 3.4%). Inflation numbers are now having very different trends in different parts of the ... (full story)