ECB Bulletin Downplays Importance of Core Inflation Measure
The European Central Bank (ECB) monthly bulletin releases today showed the bank feels Harmonized Index of Consumer Prices (HICP) ex-energy or core HICP is not an ‘ideal’ measure of underlying inflation.
Can extend medium-term inflation horizon
Medium-term horizon cannot be extended indefinitely
Economic recovery is projected to strengthen but global developments are weighing on the short-term outlook
Export orders and sentiment indicators point to subdued global trade developments in the near term
Consolidation efforts are needed to set public debt ratios firmly on a downward path
(Market News Provided by FXstreet)