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Does Greece slip up?

| Posted by: Paul Donovan | Tags: Paul Donovan

  • Euro consumer price data will probably be negative on the year, but this is not deflation. Deflation is a general decline in prices not one price falling and other prices rising (Mr Draghi, please take note). We see Euro inflation rising over the remainder of the year.
  • US consumer price data should show support from housing (a "price" that no one actually pays) and very little effect from the dollar (exporters to the US will match US producer prices as a rule, regardless of currency). We also have rising US inflation this year.
  • The UK has labour market data - a political football given the election campaigning. The data should show further labour market strength as firms have seemingly chosen to invest in labour rather than capital (implying lower productivity and higher employment).
  • The Greco-German drama continues in Europe. The EU Commission said negotiations need to be more intense for a deal to be done at the Eurogroup's cosy little chat in Riga next week (can they get more intense?). The IMF's Lagarde said she wants her money back.