Spain and Germany may presage steeper than expected inflation fall

Spain & Germany may presage steeper than expected inflation fall

LONDON (Reuters) – The European Central Bank has been saying for some time that the current rise in consumer inflation is based primarily on energy & commodities & won't last.

This has kept most policymakers cautious approximately changing the bank's message of continuing with its asset buying until the end of the year & not considering tightening until afterwards.

Data on Thursday suggested the caution was warranted. As this graphic — http://bit.ly/2olmYTG — shows, the rise in prices in Germany & Spain eased off markedly this month.

Could the euro zone be next?

Euro zone inflation for March will be released on Friday. Reuters polls suggest it will dip year-on-year to 1.8 percent from 2 percent.

But the decline in Spain & Germany was much steeper.

(Reporting & graphic by Jeremy Gaunt)

Source: “Reuters”