Eurozone Inflation Rises Above Expectations

The eurozone inflation rate held steady at 0.4% in August, slightly higher than the original estimate of 0.3%, revised Eurostat figures show.

The revision means that the rate was unchanged from July’s 0.4%.

However, it is still much lower than August 2013’s figure of 1.3%.

Earlier this month, the European Central Bank (ECB), which has an inflation target of 2%, cut its benchmark interest rate to 0.05% and introduced new stimulus measures.

Under its asset purchase programme, it will buy debt products from banks, in an effort to add liquidity to the financial system and revive lending.

Fears are growing that the eurozone could tip into deflation, which would make it harder to restore the region’s moribund economy to health.

Mario Draghi, head of the ECB, has previously described inflation at below 1% to be in a “danger zone”.

via BBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.