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Underlying inflation still a worry, more German gloom

The recent increase in surveys of price pressures and the strong German wage figures released this week suggest there is still not enough evidence to convince the ECB that underlying inflationary pressures are easing fast enough. This will keep policymakers cautious about cutting rates too soon. Next, week we expect to learn that inflation in the euro-zone fell further in February while the ESI remained consistent with GDP stagnating. 

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