Trump, Davos, USA
Donald Trump spoke at the World Economic Forum in Davos. You have to hear this.
Euro zone inflation amounts to 2% on soaring food and energy
In June, euro zone inflation reached 2% for the first time for more than a year because of soaring food as well as energy costs. It undoubtedly provided some comfort to the EU’s key financial institution because it considers reining in its excessive economic stimulus.
Inflation in the nineteen countries that share the common currency, inched up by up to 2% from May’s outcome of about 1.9%, EU statistics office Eurostat informed on Friday. The figure turned out to be in line with general market hopes because energy prices managed to tack on.
In February last year inflation accounted for 2%.
Without unprocessed food and also volatile energy prices, inflation amounted to 1.2%, below the average estimate of market experts for no change from May’s reading of 1.3%.
Another major inflation indicator, also excluding tobacco and alcohol prices, accounted for about 1% in June, slipping from May’s 1.1% and being in line with hopes.
Energy prices managed to ascend up to 8% year-on-year. At the same time unprocessed food edged up approximately 3%.
The ECB comes up with a mission to keep inflation below, although close to 2%. However, the given task has appeared to be challenging enough, even with economic surge on its best run for a decade.
This month the European Central Bank has made up its mind to have its 2.6 billion euro bond purchase program stopped by the end of 2018. Furthermore, the key bank emphasized that interest rates would be intact by summer 2019.
However, the real threat of a global trade feud as well as the uncertain budget policies of the fresh Italian government might endanger the EU economy.
By the way, Eurostat's flash estimate for the month doesn’t come with a monthly calculation.
Similar
Trading EUR: await news from the ECB
The ECB Monetary Policy Meeting Accounts will be released at 14:30 MT on January 16
Important events this week will bring us
We expect the US-China phase one trade deal to be signed on Wednesday and multiple important indicators for the USD. Plus, it is the first week of the earnings reports
Latest news
Retail data may shake the loonie
Canada will publish the headline and core retail sales on January 24 at 15:30 MT time.
The ECB and the euro: surrounded by skeptics
The European Central Bank will publish its monetary policy statement and announce the main refinancing rate on January 23 at 14:45 MT time.
Trump, Davos, USA
Donald Trump spoke at the World Economic Forum in Davos. You have to hear this.
Deposit with your local payment systems
