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A Framework That Provides Clarity

During periods of “low visibility,” confusion reigns: for every indication of one trend, there seems to be a countertrend. The key is to glean from the collective wisdom of reliable leading indicators a clear signal that the economy is headed for a turn.

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May 01 2014

As Eurozone Inflation Disappoints, Pressure on ECB Grows

Consensus hopes for a strong rebound in Eurozone inflation were dashed this week with inflation growing less than expected, despite a boost from the Easter holiday. On the heels of the disappointing data, the European Central Bank (ECB) faces increased pressure to cut rates, and even enact quantitative easing, in an effort to stave off deflation. With the ECB expected to delay a rate cut decision until June, will disinflation continue or will meager inflation be enough to indefinitely delay further accommodation?

ECRI’s Eurozone Future Inflation Gauge (EZFIG) predicts cyclical turns in Eurozone inflation and its latest update answers this question, providing insight into how it may influence ECB decision-making.

Related News & Events

Earnings Growth Upturn Masks Labor Market Weakness

ECRI May 1, 2014

Earnings growth has risen for an unwelcome reason – because growth in hours has fallen faster than pay growth. More

 

Is the U.S. Heading Toward a Deeper Downturn?

Wall Street Journal May 1, 2014

The economy's leading indexes were pointing to a slowdown before bad weather hit earlier this year -- but there is much more to the economy’s weakness than weather. More