Monday March 30, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Euro area inflation steady at 0.5 pct underscores Draghi challenge

By Ian Wishart

The euro-area inflation rate held steady in June at less than half the European Central Bank’s target, underscoring the challenge faced by Mario Draghi as he tries to stoke prices and ignite growth.

Consumer prices grew 0.5 percent in the year, equaling May’s increase, the European Union’s statistics office in Luxembourg said today. That matched the median forecast in a Bloomberg News survey of 35 economists. Core inflation unexpectedly accelerated.

“This keeps the pressure on the ECB to keep the door open to further policy easing,” said Martin van Vliet, senior euro economist at ING Groep NV in Amsterdam. “It’s premature to suggest that this downside risk of Europe sliding into Japan deflation has vanished. It’s still a fragile economic situation.”

Anemic economic growth and persistently slow inflation prompted the ECB president and his officials to introduce a range of measures earlier this month. The Frankfurt-based central bank cut its benchmark interest rate to a record-low 0.15 percent, took its deposit rate below zero and unveiled targeted loans to help revive lending and growth.

The euro-zone economy will expand by 0.3 percent in the second and third quarters, accelerating to 0.4 percent in the final three months of the year, according to a separate Bloomberg survey of economists.

Further Stimulus

With inflation at less than half the ECB’s target of just below 2 percent for a ninth month, Draghi has prepared investors for the prospect of further stimulus should the threat of a negative price spiral remain.

“As long as the inflation rate is considerably below our definition of price stability, there is a risk that expectations for future inflation become unanchored,” ECB Executive Board member Yves Mersch said yesterday in an interview with German broadcaster Deutschlandfunk.

None of the economists surveyed by Bloomberg News expects the ECB to change its benchmark interest rate or cut its deposit rate further this month when officials meet on July 3.

Indications that the 18-nation euro-area’s recovery is flagging have been mounting with consumer confidence unexpectedly falling in June, lending to companies and households down almost 2 percent from a year ago in 2014 and the jobless rate, at 11.7 percent in April, just off the record.

Energy prices increased 0.1 percent in June after stagnating last month, today’s report showed. Prices of alcohol, food and tobacco declined 0.2 percent following a 0.1 percent rise in May. The cost of services rose 1.3 percent after a 1.1 percent jump.

The core inflation rate, which excludes volatile items such as energy, food, alcohol and tobacco, increased 0.8 percent after a 0.7 percent advance in May. That exceeds the median economist estimate of 0.7 percent.

[Bloomberg]

ekathimerini.com , Monday June 30, 2014 (12:35)  
ECB nerves fray on Greece as supervisors rile central bankers
Greek markets show all at risk should mistake trigger a default
Rift talk may be self-fulfilling prophecy
Undeclared labor flourishing as inspections are insufficient
Greece’s Tsipras to meet ministers as creditors ponder overhauls
Greece’s Prime Minister Alexis Tsipras is to hold a cabinet meeting Sunday as Greek officials and creditors in Brussels discuss overhauls the country proposes to secure more funds from the e...
Moscow expects progress from Tsipras visit
Prime Minister Alexis Tsipras’s planned visit to Moscow on April 8 will be a “big event” in the course of relations between Greece and Russia, according to the Russian ambassador in Athens, ...
Inside News
SOCCER
Improved Greece draws 0-0 at Hungary
Greece ended up goalless with Hungary in Budapest on Sunday, on manager Sergio Markarian’s debut on the national team’s bench, a result that has left Greece at the bottom of its Euro 2016 qu...
HANDBALL
Hooligans mar PAOK´s handball cup triumph
PAOK won its second Greek Cup in handball beating AEK 29-27 in Sunday’s final in Thessaloniki, but the clashes between AEK fans and the police as well as the exchange of lethal flares betwee...
Inside Sports
COMMENTARY
Let´s change the subject
Let’s talk about the weather. The cloudy skies, the rain, storms and humidity, the overall heavy atmosphere. It’s better to think of that than politics and politicians, whatever cuts they ma...
EDITORIAL
Too little, too late?
Many of the measures that are rumored to comprise part of the list that the Greek government is expected to submit to the European Commission, European Central Bank and the International Mon...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. ECB nerves fray on Greece as supervisors rile central bankers
2. Greek markets show all at risk should mistake trigger a default
3. Improved Greece draws 0-0 at Hungary
4. Rift talk may be self-fulfilling prophecy
5. Undeclared labor flourishing as inspections are insufficient
6. Agenda
more news
Today
This Week
1. Greek markets show all at risk should mistake trigger a default
2. ECB nerves fray on Greece as supervisors rile central bankers
3. Eurogroup unlikely to be held soon to discuss Greek reforms
4. Moscow expects progress from Tsipras visit
5. Another suspect eyed in prison breakout plan
6. Greece’s Tsipras to meet ministers as creditors ponder overhauls
Today
This Week
1. Next Monday is D-Day for state funds
2. PM faces Merkel amid race to detail reforms
3. Eurogroup unlikely to be held soon to discuss Greek reforms
4. Some more equal than others
5. Greece to present reforms by Monday, says gov't spokesman [Update]
6. Moscow expects progress from Tsipras visit
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.