Latest data released by Eurostat - 1 March 2019
- Prior +1.4%
- Core CPI +1.0% vs +1.1% y/y expected
- Prior +1.1%
Headline estimate rebounds slightly as expected but the more important core reading actually misses on expectations slightly as it falls to just 1.0% y/y in February. If the ECB is still hoping for signs that sustainable inflation pressures are starting to come around, then they're still going to have to wait longer.
This will continue to suggest that the ECB won't be able to hike rates this year as what markets are currently pricing in. EUR/USD trades near the lows at 1.1357 currently and EUR/GBP is a little higher at 0.8582 now but in a narrow range on the day.
