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Apolline Menut at Barclays noted that....>

DATA REACT
DATA REACT: Apolline Menut at Barclays noted that the eurozone Markit PMI report
surprised to the upside and was the highest print since June 2006.
- While the strong growth is fairly well-known, ECB policy is more dependent
upon the path of inflation and Menut remarked "one highlight of the report was
the strengthening of inflationary pressures", adding "firms transmitted the
increase to clients with output prices rising to their highest level since April
2011".
- Despite this news, Barclays are not expecting an acceleration of euro area
HICP in Q1 this year. 
- To be precise Barclays "forecast headline inflation to decline to 1.2% y/y in
February, before it bounces back to 1.6% in March, heads towards 1.9% in Q3 and
stabilises at around 1.7% y/y (on average) thereafter."

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