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Tuuli Koivu, Research Analyst at Nordea Markets, points out that the Euro-area core inflation at 1.1% was in line with consensus but slightly below their expectation.

Key Quotes

“According to our preliminary calculations, the monthly change in the core inflation was stronger than in the previous months but did not correct for the weakness seen in August and September.”

“The rise in the annual inflation number was mainly due to the base effect from a year ago. The headline inflation continued above the ECB target at 2.2% due to strong positive contributions from food and energy.”

“We do not think that the recent weakness in the Euro-area data makes the ECB change its plans to stop net asset purchases at the end of 2018.”