TD Securities’ Global Strategy Team provides insights into the Eurozone’s inflation outlook. The report indicates that Germany’s HICP is expected to remain steady at 2.0% year-on-year in January, with fuel price increases balanced by base effects and industrial electricity subsidies. This stability suggests that inflation will not pose a challenge for the European Central Bank.
German inflation outlook for January
“The German Laender data reinforces our previous view that the national level HICP is set to be steady in January at 2.0% y/y (mkt: 2.0%). Renewed increase in fuel prices will be balanced by base effects and the incoming industrial electricity subsidies.”
“We also expect core prices to remain stable, helping to keep broader price pressures in check. As a result, the largest euro area economy would continue to pose no challenge for the ECB, as inflation spends another month at target.”
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Source: https://www.fxstreet.com/news/eur-inflation-pressures-remain-stable-td-securities-202601301143
