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)