Eurozone HICP inflation likely to bounce back into positive zone – Danske Bank

FXStreet (Delhi) - Research Team at Danske Bank, suggest that after the drop back into deflation territory in September, they expect the Eurozone HICP inflation figure to reverse back into inflation and forecast a rate of 0.1% y/y.

Key Quotes

“Gasoline prices declined again in October and we forecast the energy price component to be broadly unchanged. Instead we look for an increase in core inflation to 1.0% y/y from 0.9% y/y in September due to both higher service and goods price inflation.”

“Our forecasts are above consensus and after the higher-than-expected German numbers yesterday the risk might be skewed towards even higher numbers.”