Inflation dived in spring last year as the global economy fell into a recession due to the coronavirus lockdowns, while US WTI crude Oil fell into negative territory, which sent inflation down. Headline CPI (consumer price index) inflation turned negative in the Eurozone from September until January this year, as a second wave of lockdowns and other restrictions sent the Eurozone economy into a second recession this winter.
CPI inflation turned positive in February this year, as crude Oil prices kept increasing and in the last few months it hes been moving higher as the Eurozone economy reopens. Headline CPI stands at 1.6% for May and this month it is expected to move up to 1.9%.
Core CPI was at 1.4% in January, but has been slashed in half since then. Although we should see a jump tomorrow, after seeing some higher inflation numbers from Germany and Spain today. EUR/USD remains steady around 1.22 waiting for the CPI report tomorrow and will probably jump up is we see a jump in inflation.
By: Skerdian Meta (FX Leaders).
Image: Forbes.
Review: FM.