European Central Bank President Mario Draghi’s bond buying bonanza has seen inflation rebound to flat after annualized CPI printed at 0.00%, out of negative territory for the first time since the 0.30% print on December 17th. Adding to the positive momentum was the first instance of positive loan growth in nearly 3-years as easing frees up funds for lending. The impact of monetary policy is being broadly felt through the common currency economy but has yet to demonstrably impact unemployment. In deference to expectations, Euro Area unemployment stood firm at 11.30% despite estimates of the number dropping to 11.20%. Unemployment numbers in Greece and Spain remain above 20% while Italy experienced a substantial move higher, reaching 13.00% compared to 12.70% prior. Despite the continued sell-off in German sovereign bonds, equity benchmarks managed to post gains, with the German DAX gaining 0.19%.
Euro Area Inflation Recovers
Daily Analysis - 01/05/2015