Eurozone: Flash inflation to remain at the 1.3% level – Danske Bank

According to analysts at Danske Bank, the main event on the global front is the Euro flash inflation for April and they expect it to remain at the 1.3% level from March.

Key Quotes

“We project core inflation will decline back to 0.9%, due to Easter base effects from 2017 becoming a drag on services prices. A temporary increase in headline inflation in coming months is likely because of energy price inflation, although we expect the underlying price pressure remains subdued going forward.”

“We also get UK PMI services for April, which may be decisive for Bank of England ' rate decision next week. It fell sharply to 51.7 in March, which was much more than suggested by other confidence indicators. We estimate a rebound to 53 in April.”