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.
Eurozone’s core inflation
BARCLAYS | Headline inflation surprised slightly to the downside while core prices increased more than we had expected. At the non-core level, energy inflation remains weak (-8.7%). At the core level, both non-energy industrial goods (NEIG) and services prices increased by 0.1pp, to +0.4% and +1.3%, respectively, and leading the unexpected 0.1pp rise in core inflation.