Eurozone CPI
Headline -
MoM Flash || -0.4% (Forecast 0.1%, Previous -0.4%)
YoY Flash || 8.5% (Forecast 8.9%, Previous 9.2%)
Core:
YoY Flash || 5.2% (Forecast 5.1%, Previous 5.2%)
The headline inflation drop is unlikely to expunge concerns among conservative policymakers that rapid price growth is getting entrenched, a worry reinforced by poor underlying inflation data on Wednesday.
Conservative policymakers are likely to argue that a milder-than-expected economic downturn will mean a smaller increase in unemployment, so wages will remain under upward pressure and force the ECB to raise rates even more.
