Economists at Barclays have issued inflation forecasts for the eurozone:
- See 0.5% inflation in 2015
- See 0.8% inflation in 2016 versus 0.9% previously
- Weak labor cost pressures “will filter through consumer prices and ultimately, have lasting disinflationary effects”
- Low inflation in December would increase the risk of ECB action in January
With inflation forecasts that low — especially in 2016 — the ECB should feel some urgency to take action.
