Euro area and Germany HICP in focus this week – Nomura

Analysts at Nomura expect the flash reading of German HICP inflation to increase to 2.2% y-o-y in July from 2.1% in June.

Key Quotes

“For core inflation, we expect an increase to 1.2% y-o-y in July from 1.1% in June.”

“In regard to Euro area flash reading of HICP, We forecast it to remain at 2.0% y-o-y in July. The support from the energy price increase should weaken from last month.”

“For core inflation, we forecast an increase to 1.0% y-o-y in July from 0.9% in June. This is partly due to an unwinding of seasonal distortions caused by the different timing of holidays this year compared with last year.”