Search ForexCrunch

Analysts at Danske Bank suggest that today’s main event is the euro area flash HICP and the inflation number is particularly interesting given that euro area growth slowed to a four-year low yesterday and Draghi’s insistence on inflationary pressure last week.

Key Quotes

“Ergo stagflation. Since April, headline inflation has been close to the ECB’s target (below but close to 2%). We expect the October numbers to increase slightly to 2.2% y/y driven by higher energy prices and much more importantly, higher core inflation. We expect a pickup in core inflation to from 0.91% to 1.09% on the back of higher service price inflation.”