Thursday
Feb032011
Credit Suisse | European Economics 02.02.11
Thursday, February 3, 2011 at 8:00PM Some highlights from the attached article:
The rise in headline inflation back above the ECB’s target, a high and rising oil price, and ECB President Trichet’s hawkish comments have all shifted concerns that higher inflation could prompt a rise in policy rates sooner than we currently expect.
Core inflation is fairly subdued... Governing Council members have insisted their mandate – and focus – is on headline.
a further rise in commodity prices and their pass-through to the HICP mean that there is a clear risk that inflation could rise to 3% in the autumn.