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Eurozone: Coronavirus to take its toll on the inflation – Danske Bank

Analysts at Danske Bank take a look at how the coronavirus crisis is affecting the euro inflation outlook.

Key quotes

“A sharp drop in the oil price and significant price decreases in clothing and footwear as well as travel-related items are set to take their toll on the euro inflation outlook in the short term and we expect core inflation to average now only 0.7% in 2020.”

“We do not expect announced fiscal and monetary measures to result in a marked inflationary boost for the euro area economy.”

 

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