The annualized consumer price index for the Euro Area ended 2015 with a rise of 0.20% meeting expectations and unchanged compared to the prior month’s figures according to the report distributed by Eurostat. On a monthly basis, inflation flat-lined, stagnating at of 0.00% after falling to -0.10% in November. Core inflation, which excludes energy, food, alcohol and tobacco, remained steady, exhibiting 0.90% annualized expansion, well below the ECB’s target for inflation to rebound towards 2.00% over the medium-term. Despite optimistic expectations from ECB President Mario Draghi that inflation would begin to pick up after adjusting the deposit rate further to the downside and extension of the quantitative easing program, the measure has barely budged. All eyes now turn to Thursday’s ECB decision and press conference on monetary policy. While the Euro retreated after the announcement, the EURUSD pair surged higher late in the trading session, climbing back above 1.0900.
Euro Area Inflation Remains Unchanged
Daily Analysis - 20/01/2016