Today's Eurozone flash HICP data surprises lower across the board for the YY numbers but a beat for the MM:
- HICP Flash YY: 2.4% (expected 2.6%)
- HICP Flash Excluding F&E YY: 3.1% (expected 3.2%)
- HICP Flash Excluding F,E,A & T YY: 2.9% (expected 3.0%)
- HICP Flash Excluding F, E, A & T MM: 1.1% (expected 0.7%)
The price reaction to the miss was marginal and was largely expected as we noted here.
I wouldn't expect this to change much for ECB rate expectations with a hold for April already priced at 80% and a cut for June priced at 99.5% before the inflation data.
This does give the doves on the governing council slightly more ammunition in their deliberations though.
