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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (28)	2/15/2004 5:28:58 PM
From: mishedlo	Respond to of 116555

From the Editorial section of that link ecb.de Looking at price developments, the annual HICP inflation rate fell in December 2003 to 2.0%. The same rate was estimated by Eurostat for January 2004. In the course of this year, inflation rates should fall below 2% and remain in line with price stability thereafter. While US dollar-denominated global commodity prices have been on an upward trend over recent months, the past appreciation of the euro is dampening their effects on domestic prices. Moreover, wage developments are expected to remain moderate in the context of high rates of unemployment and a gradual economic recovery. Recent data on labour costs seem broadly to confirm the assessment of a levelling-off of wage increases. On the whole, inflationary pressure remains limited – an assessment that is shared by all available forecasts. Given the conditional nature of any forward-looking evaluation, it is of course important to bear in mind all elements of risk to the outlook for price stability. Furthermore, it is necessary to monitor inflation expectations closely. ============================================================ Commentary on M3 follows