- Prior 0.9%
- Core 0.7% vs 0.9% prior
- Food, energy, alcohol and tobacco inflation rose to 1.8% from 1.6%
The first estimate of Dec inflation shows a drop back towards the lows.
EUR/USD drops to 1.3613 then recovers to 1.3629
EZ HICP flash 07 01 2014
A confirmation of the fall when we get the final read may not get the deflation bugs chattering but if we post another fall for January then the spotlight will be on the ECB once again.
Update: I’m bad as I forgot to go back into the numbers which didn’t initially appear on our calendars (thanks Yohay for the reminder).
The important core number dropped which is not good news considering the food & energy component has risen, as this is usually the big driver of direction. As I said just above, if this number shows signs of falling further then Draghi & Co will be under pressure again.
