Much like Germany yesterday, we're expecting a decent rise in inflation
At the top of the hour we get the preliminary Eurozone CPI numbers.
CPI is expected in at 1.0% vs 0.6% prior y/y. Looking at the economist estimates, some have been revised higher to 1.1% as of yesterday, and probably following the German data.
What's interesting to note is that the core number is expected in unchanged at 0.8% y/y.
We have to remember that central banks use whatever number suits their agenda at the time. Much like the ECB (and Fed) concentrated on the headline figure when starting QE, they'll switch to talking about the core number if the headline starts running hot, as that will lag behind. We all know the difference between the headline and core numbers but the CB's seem to think we don't so they will use the core when inflation is rising to keep their easing bias.
However, it won't stop the market from prodding central bank policy, particularly the ECB, if we see a strong upward move in CPI.
All will be revealed in a few minutes.
