Euro Zone Inflation, Unemployment Hold Steady

Euro zone annual inflation held steady at 0.2 percent in July, far below the European Central Bank (ECB)’s target and disappointing those who hoped monetary stimulus would provide a quick answer to the region’s torpor.

The 0.2 percent figure is the flash estimate from Eurostat, the statistical office of the European Union, and suggests a flatlining of inflation.

Prices rose by 0.2 percent in June and 0.3 percent in May, after a flat reading in April.

May’s pick-up boosted hopes that inflation was returning to the 19-country single currency zone, which dipped into deflation earlier in the year.

However, prices have failed to accelerate since May, with inflation remaining far below the ECB’s target of close to 2 percent.


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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.