156
Currency Analyst since 2010

BoA: euro zone's inflation will decline

Euro zone’s August inflation data are due on Friday at 09:00 GMT.

 

Previous

Forecast

CPI

0.4%

0.3%

CPI Core

0.8%

0.8%

 

Analysts Bank of America Merrill Lynch expect the euro zone’s inflation to slide in August because of the weaker-than-forecast oil prices. In their view, inflation should bottom in August and account to 0.4% in September rising slowly until the year-end, but the likelihood of further downside still appears high. The specialists consider worrisome the fact that the inflation expectations have declined.

BoA thinks that the September meeting may be too early for the ECB to recognize heightened risks to the inflation outlook, but, if risks persist and some materialize as they expect, it will not be able to avoid it. Ultimately, the ECB will be forced to act more before June next year, but it is uncertain whether it will be too little, too late..

Scroll to top