Euro-area headline HICP inflation figure likely to decrease to 1.5% - Danske Bank

The research team at Danske Bank expects the euro-area headline HICP inflation figure to decrease to 1.5% while core inflation should drop back to 1.0% in May from 1.9% and 1.2% in April, respectively.

Key Quotes

“The relatively weak German inflation print yesterday lends support to this view. We think that the increase in both headline and core in April was largely due to Easter effects. Looking ahead, the support from the oil price continues to fade, meaning headline inflation is likely to fall throughout 2017 to as low as 1.0% towards the end of the year.”