BoAML | Euro area GDP grew 0.3% qoq in 3Q, in line with consensus expectations and our tracker. Meanwhile, inflation was again weaker than the release would suggest, if we look at the finer details.
euro area inflation
BofAML | We have been among the most bearish on Euro Area inflation, expecting 0.9% post-Brexit inflation in 2017, versus consensus at 1.3%. This also applies to core inflation, where we expect a very mild trend over the next two years that would leave core inflation slightly above 1% by 2018. Still, markets are pricing declining inflation over the next few years.
Goldman Sachs | While we expect that the combination of the fall in oil prices, the rise in the Euro and the weakening of equity prices will have relatively limited effects on growth, the effects on the near-term inflation outlook are likely to be much more substantial.