Euro area inflation will be a touch softer than last month’s reading - TDS

Research Team at TDS, suggests that the downside surprise in German inflation on Tuesday suggests that euro area inflation will be a touch softer than last month’s reading, and weaker than we had previously expected in August.

Key Quotes

“So we’ve downgraded our expectations to 0.2% y/y for headline inflation, a hair weaker than market consensus. Core inflation likely receded a tick to 0.8% y/y as well (consensus 0.9%).: