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 Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

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