More heralding of a small pickup of...>

EUROZONE DATA: More heralding of a small pickup of Eurozone inflation. This time

Giada Giani at Citi writes "the HICP inflation prints for Jul and Aug confirmed

that underlying inflation in the Eurozone is creeping higher." 

- Citi continues "Businesses' price expectations for the next 12 months have

been sitting well above their long-term average since the beginning of the year.

Note that at the same time signs of wage acceleration remain absent, at least at

the euro area level".

- Yet while most economists have highlighted improvement, few are calling for a

large breakout. For example Barclays argue "the rise in services inflation that

has unfolded thus far during the summer as mainly driven by seasonal factors,

which should correct in September. Hence, we maintain our cautious stance that

services inflation remains on track for a modest recovery but is unlikely to

accelerate decisively unless labour markets tighten further". 

- Barclays goes on to argue that stronger non-energy industrial goods prices is

too weak to change their view that the strong euro holds back any recovery in

tradable goods prices.