FXstreet.com (Barcelona) - Nomura economist Philip Rush notes that surprisingly soft inflation in April lowers the level of his short-term forecast.

However, he continues to add that the next move remains higher, owing to partial payback, the rebound in commodity prices and especially base effects from last year’s falls. He writes, “We still see it as fleeting, with the right conditions in place for inflation sticking close to target, albeit not sustainably below it.”