Eurozone inflation to rise by modest 1% in 2016 – ANZ

FXStreet (Delhi) – Research Team at ANZ, notes that the ECB forecast that HICP inflation will rise by a modest 1.0% in 2016 (1.1% forecast in September) and 1.6% in 2017 (1.7%).

Key Quotes

“Inflation will pick up early next year owing to base effects. Real GDP growth is projected to rise by 1.7% in 2016 (1.7%) and 1.9% in 2017 (1.8%). The main drivers of growth are accommodative monetary policy, reduced headwinds from fiscal policy and the lower oil price which is supporting real disposable incomes.”

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