Latest data released by INSEE - 28 August 2020

  • Prior +0.8%
  • CPI -0.1% vs -0.2% m/m expected
  • Prior +0.4%
  • HICP +0.2% vs +0.2% y/y expected
  • Prior +0.9%
  • HICP -0.1% vs -0.3% m/m expected
  • Prior +0.4%

After the surprising uptick in July, French inflation is seen returning to more subdued levels again this month as the fallout from the virus outbreak continues to reverberate.

Following the Fed's latest strategy change yesterday, expect the ECB to also emphasise a similar narrative on wanting inflation to rise significantly for a sustained period of time before they themselves start to consider any potential policy changes.

Especially more so that inflation levels are more subdued across the region and will likely stay that way for a prolonged period of time as well.

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