Eurozone Inflation Cools Down in June

The eurozone’s inflation rate dipped slightly from 0.3% in May to 0.2% in June, according to official figures.
The reading marks the second month of a return to inflation after five months of flat or falling prices.

The European Central Bank (ECB) has been taking steps to reflate the economies of the 19 countries that use to euro.

Other figures showed that unemployment throughout the bloc remained at 11.1% in May, the same level as in April.

Unemployment in Germany was the lowest of the 19, at 4.7%, while crisis-struck Greece was the highest at 25.6%.

In March, the ECB began a €1 trillion stimulus programme to boost economic activity in the eurozone.

The rise in prices was due in part to an increase in food and beverage costs, which were 1.2% higher.

Jennifer McKeown, senior European economist economist at Capital Economics, said the inflation figure highlighted the importance of the ECB’s policy support: “The decline from 0.3% to 0.2% was more modest than we had anticipated.

via BBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza