Breaking: Eurozone Preliminary HICP inflation eases to 8.5% YoY in February vs. 8.2% expected
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]
The annualized Eurozone Harmonised Index of Consumer Prices (HICP) comes in a tad softer at 8.5% in February vs. January’s 8.6%, the latest data published by Eurostat showed on Thursday. The market expected the inflation gauge to ease to 8.2% in the reported period.
The core HICP climbs to 5.6% YoY in February when compared to 5.3% expected and 5.3% seen in the January reading.
On a monthly basis, the old continent’s HICP unexpectedly jumped by 0.8% in February vs. -0.3% expectations and -0.2% previous. The core HICP arrived at 0.8% last month as against the 0% expected and -0.8% registered in January.
The Euro area inflation data is featured a trading day after Germany’s annual HICP for February, which rose by 9.3%, beating 9.0% estimates while following a 9.2% increase seen in January.
The ECB inflation target is 2%.
The bloc’s HICP figures hold significance, as it would help investors reprice the European Central Bank’s (ECB) rate hike expectations. Market expectations currently attach a 65% probability to a 50bp hike in May, with a 50 bps March rate hike almost a done deal, as endorsed by several ECB policymakers.
“Looking at the main components of euro area inflation, food, alcohol & tobacco is expected to have the highest annual rate in February (15.0%, compared with 14.1% in January), followed by energy (13.7%, compared with 18.9% in January), non-energy industrial goods (6.8%, compared with 6.7% in January) and services (4.8%, compared with 4.4% in January).”
The shared currency is a little impressed by the hotter-than-expected Eurozone inflation data, as EUR/USD keeps its range near daily lows of 1.0618. The spot is shedding 0.36% so far.
[/s2If]
Join Our Telegram Group
