2016 unchanged forecast of +1.8%

  • 2017 +1.5%
  • HICP forecast +0.5% 2015 vs +1.1% prev forecast in Dec
  • 2016 +1.8% vs +1.6% prev
  • 2017 +2.2%

Comments from BUBA head Jens Weidmann

  • key factor behind subdued inflation outlook is sharp drop in crude oil price
  • growing labour market shortages are supply side risk to growth and could lead to to increased price pressures
  • foreign trade hampered by dampening global dynamics but also buoyed by euro's depreciation and strengthening cyclical recovery in Eurozone

EURUSD nudging higher in a quiet start so far