The eurozone economy has witnessed deteriorating inflation over the past years; however, the disinflationary period is seen fading away as core inflation started stabilizing in 2015, although at a very low rate.
Eurozone January 2015 headline HICP inflation dropped to -0.6 percent from 3.0 percent seen towards the end of 2011. Although, a rebound was seen in December 2015 print as it rose to +0.2 percent. December core inflation excluding food, alcohol, energy and tobacco price increased to +0.9 percent, up from +0.6% in January 2015.
"We stick to our long-held below-consensus view that euro area consumer prices will remain off the ECB target for a long time to come, forecasting headline HICP inflation to average +0.1% in 2016 and +1.3% in 2017" - Barclays