Latest inflation numbers from some of the Eurozone members shows a mixed bag

Today we've had inflation data from a few countries (all y/y);

  • Netherlands HICP 0.3% vs -0.2% exp. Prior 0.2%
  • CPI 0.6% unch
  • Greece HICP 0.1% vs -0.7% exp. Prior -0.1%
  • CPI -0.5% vs -1.1% exp. Prior -0.7%
  • Ireland HICP -0.2% vs -0.2% exp. Prior 0.0%
  • CPI -0.1% vs +0.1% prior
  • Portugal HICP 0.2% vs 0.6% exp. Prior 0.7%
  • CPI 0.4% vs 0.8% prior

Some worse, some better. The main take from the data is that inflation remains at very low levels and that's what the ECB want to try and counter. The second round effects of falling inflation is what the ECB have been mostly touting as their main worry and it's that, through policy, that they are likely to target today through action or talk of action. That could shift the tool box away from the wide scattergun approach of rate moves, to policy that could target those sectors that might be at most risk from these second round effects, in finer detail.