Flash HICP (Dec 2019) Preview -.......>

EUROZONE DATA: Flash HICP (Dec 2019) Preview - 1000GMT 7/1/2020

-----------------------------------------------------------------------

- HICP (y/y): Bbg Consensus: 1.3%; Previous (Nov): 1.0% 

- Core HICP (y/y): Bbg Consensus: 1.3%; Previous (Nov): 1.3% 

- Dec inflation is seen strengthening to a six-month high of 1.3%, likely

boosted by rising energy prices and energy base effects. 

- Core HICP is projected to remain unchanged at Nov's level, which was the

highest reading since Apr 

- Inflation rose slightly in Nov following a deceleration in Oct, however HICP

remained subdued throughout 2019 

- Nov's uptick was driven by an acceleration in price growth in every category

except for energy, where prices declined 

- The EZ's composite PMI edged up in Dec, however the survey notes that prices

charged rose only modestly due to competitive pressures and weak demand. 

- Y/Y HICP stays below the ECB's target since Nov 2018- a target that could come

under scrutiny this year during the framework review of the Governing Council