BN) Deflationary Forces Intensifying in Euro Area, Says Jefferi es

Interesting number @ 11.00 CET – expected +0.8%  (down from 0.9%) –specially as we have ECB Thursday, who will be concerned about the high EURUSD and the undershooting of inflation… è ECB talks of deflation risk?

 

Source: Bloomberg LLP

 

Also this is relatively cool ECB CPI overview: http://www.ecb.europa.eu/stats/prices/hicp/html/inflation.en.html

 

This the short piece I wrote yesterday:  http://www.tradingfloor.com/posts/deflation-risk-raises-opportunity-german-bunds-667990888

 

Could put pressure on EURUSD, and confirm low in place for Bunds, if it comes in as or below expected…

 

 

(BN) Deflationary Forces Intensifying in Euro Area, Says Jefferi es

 

+------------------------------------------------------------------------------+

 

Deflationary Forces Intensifying in Euro Area, Says Jefferies

2013-12-17 15:04:48.631 GMT

 

 

By Simon Kennedy

     Dec. 17 (Bloomberg) -- Deflationary forces picked up in the euro area last month as clothing prices fell, according to an analysis by Jefferies International Ltd.

     Of the basket of goods used by the European Commission's statistics arm to estimate inflation, 24.7 percent dropped in price, said London-based economist Marchel Alexandrovich. That was more than October's 20.9 percent and the most since 2010.

     Inflation in the euro area was 0.9 percent in November, close to a four-year low. The risk for the European Central Bank is that deflationary pressures become more pervasive, dragging price growth away from its projected 1.1 percent next year.

     "If the ECB thinks inflation is slipping from its forecast then it will become a concern," Alexandrovich said in an interview.

     The share of the consumer price index basket in which prices are falling faster than 1 percent also rose to 45 percent, close to 2010's record of about 50, he said. Greece and Portugal remain deep in deflation.

 

For Related News and Information:

Euro-Area Factory Output Expands Faster Than Forecast: Economy NSN MXWBUX6K5101 <GO> Draghi Cuts ECB Rates to Combat 'Prolonged' Inflation Weakness NSN MVWKAI6K50YV <GO> Economic indicator watch: ECOW EU <GO> Top economy stories: TOP ECO <GO> ECB rate forecasts: BYFC EUR CB <GO>

 

--Editors: Andrew Atkinson, Craig Stirling

 

To contact the reporter on this story:

Simon Kennedy in London at +44-20-7330-7086 or skennedy4@bloomberg.net

 

To contact the editor responsible for this story:

Craig Stirling at +44-20-7673-2841 or

cstirling1@bloomberg.net

 

 

 

Med venlig hilsen  |  Best regards
Steen Jakobsen  |  Chief Investment Officer

 

Saxo Bank A/S  |  Philip Heymans Allé 15  |  DK-2900 Hellerup
Phone: +45 39 77 40 00  |  Direct: +45 39 77 62 23  |  Mobile: +45 51 54 50 00

 

Research: http://www.tradingfloor.com/traders/steen-jakobsen

Please visit our website at www.saxobank.com

 

This email may contain confidential and/or privileged information.
If you are not the intended recipient (or have received this email
by mistake), please notify the sender immediately and destroy this
email. Any unauthorised copying, disclosure or distribution of the
material in this email is strictly prohibited.

Email transmission security and error-free status cannot be guaranteed
as information could be intercepted, corrupted, destroyed, delayed,
incomplete, or contain viruses. The sender therefore does not accept
liability for any errors or omissions in the contents of this message
which may arise as a result of email transmission.