Eurozone: Downside risks to core inflation - TDS

Analysts at TD Securities point out that in Eurozone, flash inflation for February is released, and they are expecting headline inflation of 1.5% y/y (mkt: 1.5%), supported by Thursday's country-level releases.

Key Quotes

“We see small downside risks to core inflation of 1.0% y/y (mkt: 1.1%) on account of the volatile package holidays component, though we won't get details until mid-March. January's unemployment rate is released (mkt: 7.9%) alongside the final prints of February PMIs, which showed sharp contraction in the manufacturing sector, particularly in Germany.”