• Declining services inflation strengthened the confidence in return to target.
• ECB will decide monetary policy meeting by meeting on the basis of current situation, core inflation and policy transmission.
• Inflation is steadily approaching the target.
• Services inflation remains high, but in recent months it has been steadily moderating which was partly due to lower wage growth.
• Monthly data continue to point to weak growth both due to poor conditions in manufacturing and slowdown in services sector growth.

This article was written by Giuseppe Dellamotta at www.forexlive.com.