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Euro zone inflation data points to uptick on slower energy price fall
['Thomson Reuters']
Knoxville | WDKW 95.7 | theduke.fm
By Balazs KoranyiFRANKFURT (Reuters) -Inflation accelerated in the euro zone’s biggest economies this month, suggesting that overall price growth also ticked up across the 20 nation bloc, further easing pressure on the ECB to lower borrowing costs.
Inflation accelerated in Germany, France, Italy and Spain, solidifying investor expectations for the euro zone figure to come in around 2.2% or 2.3% on Wednesday, above August’s 2.0% reading.
Inflation based on harmonised standards accelerated to 2.4% from 2.1% in Germany, above expectations for 2.2%.
The ECB sees price growth at 1.7% next year, a worrisome reading for some policymakers who fear this could lower expectations and perpetuate anaemic price growth.
This argument was also supported by weak retail and producer price growth data in Germany and lacklustre consumer spending numbers in France.