Latest data released by Istat - 28 February 2018
- Prior m/m +0.3%
- CPI y/y +0.6% vs +0.7% expected
- Prior y/y +0.9%
- HICP m/m -0.3% vs -0.1% expected
- HICP y/y +0.7% vs +1.0% expected
A slight miss on the Italian inflation figures, but the key one to watch is the Eurozone numbers here. Core inflation figures in Europe held steady as it turns out, even though French and German preliminary figures were soft.
As I mentioned here yesterday, the key was to look past the German headline figures and focus on the core reading. Food was a big drag on German inflation figures this month.
EUR/USD holding steady at 1.2220 after bouncing off session lows, EUR/GBP at 0.8797, while EUR/CHF is at 1.1513 on the day.
