ECB Core Inflation

Headline inflation: Headline inflation, the main indicator watched by the ECB, rose to 0.4 percent from 0.2 percent while core inflation, which strips out volatile food and energy prices, rose to 1 percent from 0.9 percent, reversing the previous month fall, according to Euro News. Don’t be fooled by today rise in euro area inflation, it was affected by base effects that will likely be more than reversed in February, Nordea economist Jan von Gerich said. Inflation has hovered near zero for more than a year, well short of the central bank near 2 percent target, and ECB President Mario Draghi has already said another package of policy easing could be unveiled as soon as March. The recent bounce in oil prices is of limited consolation for the ECB, as inflation expectations have not seen a similar rise, he added. Indeed, Jens Weidmann, the Bundesbank influential president warned on Thursday that inflation forecasts for this year must be significantly reduced and numbers could turn negative in the months ahead. More monetary stimulus will be in store in March. (news.financializer.com). As reported in the news.