All Reports

Jun 06 2013

ECB Move Will Not Significantly Impact Inflation

ECRI has just updated its Eurozone Future Inflation Gauge (EZFIG). The value of this forward-looking gauge lies in its ability to predict cyclical turns in Eurozone inflation.

Despite last month’s rate cut by the European Central Bank (ECB), a move that typically increases inflation expectations, the ECB reduced its 2013 inflation forecast today. This suggests that the ECB is not overly concerned about inflation, which is near a 38-month low.

The latest update to the EZFIG clarifies the future trajectory of Eurozone inflation, indicating whether the latest ECB inflation forecast is accurate and inflation will remain restrained.

Related News & Events

What Wealth Effect?

ECRI May 31, 2013

The latest drop in consumer spending is consistent with the recessionary plunge in yoy U.S. import growth into negative territory. More