The Bigger-est Hockeystick Ever: Presenting The ECB's Latest Inflation Expectations

Back in March, we mocked the ECB's inflation forecasts with a post titled "Mario Draghi Reveals Biggest. Hockeystick. Ever!", which highlighted the ECB's ridiculous expectation that inflation would soar from 0.0% in 2015 to 2016. We though no other hockeystick could possibly surpass this.

We were wrong.

Behold the ECB's latest inflation expectations. Something to note: in March 2014, full year inflation for 2015 was expected to be 1.3%. 18 months later it is 0.1%. But don't worry, the ECB will be spot on with its forecast of 1.1% inflation in 2016 (this was 1.5% 6 months ago), and 1.7% in 2017. Just you wait.

Source: the former Goldman vice chairman currently in charge of the ECB's money printer

Comments

[XAU XAG]

Where gonna need a bigger wheel barrow

[Headbanger]

Nahhh... MAssive epic biblical crushing deflation dead ahead.

[lordylord2]

They got the public to think inflation is good. What a trick! 

[tarsubil]

Take statins, they're good for you.

[Ouagadoudou]

Totally right, that's why the inevitable collapse of the fiat is gonna be a looooong process as they will criminalize anybody saying that after all, cheaper price mau be a good thing for the common man

[viator]

I bet the warmnicks can create a bigger hockeystick than the Keynesians.

[readyforit]

So 1100% increase in inflation by next year?

I make that 16,105% in 5 years.

[DontFollowMyAdv...]

well it's not like the algorithmic manipulators are going to call their shot before they can front run everyone else to the bottom

[venturen]

going to have to build more super yatch for the super rich...just came back from the Med...and those yatch are gettinig bigger

[shovelhead]

No sweat.

Draghi is taking some omnipotence lessons from Obama.

He took a sip of his Perrier and replaced a golf divot, so the waters are falling and the Earth is healing.

[falak pema]

These projections climb faster and higher than WT1, WT2 & WT7 fell !

Rusty Shorts must be feeling decidedly naked at Draghi's conference.

Maybe we will be be authorised to compare reality with projection in 2 year's time ! (If Chinese rules don't apply in EU).

GWB should feel proud; "that motha's coming down" is now looking hunkey dorey in Draghi Land!

[Budnacho]

Hmmmm, at some point ya gotta wonder when people will stop listening to this shit.....

[Atomizer]

Market Valuation, Inflation and Treasury Yields: More Clues from the Past http://www.advisorperspectives.com/dshort/updates/Market-Valuation-Infla... Think carry trade slush fund. ;-)

[mayhem_korner]

Just send the CTRL-P proceeds directly to the plebes.  Eliminate the middle man.  Then they'll get their inflation.  So what if eurostawks tank.  Let the people have their slice of the pie I say.  /s

I believe you may get your headline, Mr. Ismay. - Captain Smith

[jarana]

DEFLECATION ahead.

Any kind of paper will do the trick.

Mario, eat some mushroom, please.

[Ghordius]

come on, "biggest hockeystick evah"

I know that for the leverage-savy from 0.00% to 1.70% it's a huge difference, but nevertheless it's still just 1.7% of forecasted inflation

the ECB does include food and energy in this inflation calculation, and both, particularly energy, particularly oil have gone down quite a lot

there are worse things to moan about, imho, then forecasting 1.7% and witnessing 0% inflation. at least in my book