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January 07, 2026
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EA: De-energised Back To Target

  • EA inflation slowed back to target at the end of 2025, reversing November’s upside news to strengthen the ECB’s “good place” caricature.
  • Falling energy prices are driving an unsustainable disinflation, while service price inflation is stuck above 3%. Small and balanced EA surprises skew lower in big states.
  • Base effects remain set to drive a drop below the target and reversal by May. A slightly below target 2026 is not dovish when underlying pressures are stronger.

By Philip Rush

January 06, 2026
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Oil in 2026

  • Last year’s downward trend in the price of oil is set to continue into 2026, with most analysts expecting Brent crude to test USD55pb in the first half of the year.
  • There is undue concern about geopolitical supply disruption buoying prices, whereas we believe the real focus should be on what Opec+ decides to do at the end of the quarter.
  • My forecast for Brent crude on 31 December is therefore USD55pb, but with the risk to this price skewed to the downside.

By Alastair Newton

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