EZ inflation peaked? - ANZ

Analysts at ANZ noted that the German CPI figures came in a lot lower in March (at 1.5% y/y against 2.2% y/y in February).

Key Quotes:

"Inflation in Spain also weakened more than expectations, easing from 3% to 2.1%. In Europe inflation looks like it may have peaked and this should be reflected in the EA HICP data due tomorrow.

Expectations there are for a 1.8% y/y rise, but the risks are clearly to the downside. With no sustainable rise in EA inflation forecast for some time yet, and with Europe still exhibiting a material output gap, we expect the data will underscore the ECB’s dovish bias."