Categories: General Market Commentary / Precious Metals
Topics: General Market Commentary / General Precious Metals

Eurozone core inflation fall raises prospect of ECB stimulus measures

Sept. 1, 2016

Eurozone core inflation fall raises prospect of ECB stimulus measures

Underlying inflation in single currency area was lower year on year in July, despite action taken by bank over past 18 months

Larry Elliott

Speculation is growing that the European Central Bank could take action to stimulate the eurozone economy after official figures showed an easing in underlying inflation last month.

Pressure on the ECB increased when the European commission’s statistical agency, Eurostat, published figures that showed core inflation in July was lower than in same month last year, despite aggressive action by the Frankfurt-based bank over the past 18 months.

With concerns that the eurozone recovery was losing momentum, Eurostat said the headline rate of inflation remained unchanged at 0.2% in August. Core, or underlying inflation, which excludes energy, goods, alcohol and tobacco, fell from 0.9% in July to 0.8%.

To continue reading please click link https://www.theguardian.com/business/2016/aug/31/eurozone-core-inflation-falls-july-ecb-stimulus-measures