European equities off to a good start on lower inflation hopes

• Eurostoxx +0.7%
• Germany DAX +0.7%
• France CAC 40 +0.7%
• UK FTSE +0.2%
• Spain IBEX +1.0%

The lower-than-expected Spanish inflation here is helping with the mood but do be reminded that it comes with a very important caveat. The drop in headline annual inflation is largely to do with base effects coming into play, considering the spike in oil prices last year as a result of the Russia-Ukraine conflict. As such, we are seeing an adjustment to the annual figures. If you look at core annual inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term, it is still very high i.e. 7.5% in March, as opposed to 7.6% in February.