Editor's Note: Below is a brief excerpt from an institutional research note written by Hedgeye Macro analyst Matthew Hedrick titled, "Top 7 Reasons Why the ECB Will Act on March 10th." To read more of our Macro team's research ping firstname.lastname@example.org.
- It’s All About Inflation! Or lack thereof… Not only is the ECB nowhere near its 2.0% inflation target, CPI is negative! In the initial February reading, Eurozone CPI fell to -0.20% Y/Y vs Expectations for 0.00% and Prior +0.30%. This is the first time inflation went into negative territory since September 2015. #GravityHurts
- Producer Price Index, like CPI, mirrors the deflationary forces, most currently at -2.9% JAN Y/Y, and has been in negative territory since July 2013! (see Super Mario chart below)