Eurozone inflation and US PCE core inflation amongst market movers today – Danske Bank

Analysts at Danske Bank suggest that after some quiet days (at least in terms of economic data releases), we have a more action packed day ahead of us with Eurozone inflation and US PCE core inflation data due today.

Key Quotes

“We estimate euro area HICP core inflation rose to 1.1% y/y in November from 0.9% in October, as we estimate a rebound in volatile components such as package tours and services related to transport. Here and now, it should not matter much for the ECB after its decision to extend QE to September 2018.”

“In the US, we estimate PCE core index rose 0.2% m/m in October, as indicated by the CPI figures released already. This would push the PCE core inflation rate up to 1.4% y/y from 1.3%, still well below the Fed's 2% target. Note that the Fed has seemed a bit more concerned about the persistently low inflation in recent weeks although this should not change that the Fed is on track to hike in December.”