As anticipated, inflation turning negative in the Eurozone in February did indeed prompt drastic action by the ECB, which announced a greater than expected increase in asset purchases. Elsewhere, it is encouraging to see Japan’s headline and core inflation numbers rising slightly in February, though no doubt the recent Yen strength will dampen prices down the line. As for emerging markets, both Brazil’s and Russia’s inflation rates have been falling noticeably which should be welcomed, though in both cases the numbers remain well above what would be considered comfortable levels.
Published in Investment Letter, April 2016
The views expressed in this communication are those of Peter Elston at the time of writing and are subject to change without notice. They do not constitute investment advice and whilst all reasonable efforts have been used to ensure the accuracy of the information contained in this communication, the reliability, completeness or accuracy of the content cannot be guaranteed. This communication provides information for professional use only and should not be relied upon by retail investors as the sole basis for investment.