European Inflation Drops to Record Low
Euro-Zone March HICP inflation decelerated to just 0.6% y/y from 1.2% y/y in February. This was below our median of 0.9%, but not a total surprise, after Spain yesterday reported a negative inflation rate for March. There is no breakdown with the preliminary number, but base effects from energy prices are a key driving factor and for now we agree with the ECB that deflation risks are limited, but with growth forecasts revised down sharply, the ECB must make sure that inflation expectations don't deteriorate.
- German Inflation Rate Falls to Ten-Year Low in March
- Euro-Zone Inflation Outlook Falls to the Lowest on Record in May
- Euro-Zone Inflation Confirmed at 1.1%, Unemployment Rises to Two-Year High (Update)
- Euro-Zone Inflation Confirmed at 1.2%, Employment Contracts at Record Pace
- Euro-Zone Economy Contracts the Most in 13 Years, Inflation Confirmed at 0.6%