Euro area annual inflation and its main components (%), October 2012 and May – October 2013. On many occasions during the past few months the European Sting has concluded that the ongoing deceleration of inflation in Eurozone is a bad omen. Last time it was on Friday 1 November when Eurostat announced its flash estimate for […]Eurozone to enter the winter…
November 4, 2013 by Leave a Comment
Euro area annual inflation and its main components (%), October 2012 and May – October 2013. On many occasions during the past few months the European Sting has concluded that the ongoing deceleration of inflation in Eurozone is a bad omen. Last time it was on Friday 1 November when Eurostat announced its flash estimate for […]Inflation down to 0.7%, unemployment up at 12.2%: Bad omens for Eurozone
November 1, 2013 by Leave a Comment
Eurostat, the EU statistical service, estimates that euro area inflation in October fell to 0.7% from 1.1% in September. It was 1.6% in July and then fell to 1.3% in August. This is an alarmingly fast deceleration of consumer price dynamism, threatening Eurozone with real disinflation, way below the 2% benchmark set by the European […]Eurozone: Disinflation engulfs the industrial goods sector
October 1, 2013 by Leave a Comment
In three months, from July to September this year, inflation in Eurozone fell from 1.6% to 1.1%, with a brief stopover of 1.3% in August. The European Sting has been sounding the alarm for months now, over this fast deceleration of consumer goods prices. This trend is present all along this year, starting from […]Is Eurozone heading for disinflation?
September 17, 2013 by Leave a Comment
Under different circumstances a drop of inflation to 1.3% could have been a cause for celebration. It’s not like that now. The fall of the inflation rate to that level in August is a rather negative development. However averages on many instances hide the truth. Eurozone countries in deep recession like Greece and Cyprus or […]Eurozone very close to a sustainable growth path
August 31, 2013 by Leave a Comment
After yesterday’s barrage of new positive statistics, the European economy seems to secure this summer position in the upwards pointing part of the curve. Business climate, economic sentiment and inflation all seem to turn out much better than expected readings for August. Even the abrupt fall of inflation in the euro area from 1.6% in […]ECB will be the catalyst of Eurozone’s reunification
August 28, 2013 by Leave a Comment
Today Thursday the new governor of the Bank of England, Mark Carney, is expected to confirm from Nottingham, a historic city in east Midlands, that the central bank of Britain is not to raise its basic interest rate from the currently very low level of 0.5%, “until the Labour Force Survey headline measure of the […]Eurozone: Statistics don’t tell the whole story
August 27, 2013 by 1 Comment
Government sector deficits in Eurozone after having peaked in 2009-2010 are now not only levelling out but actually decreasing. According to Eurostat, the EU statistical service, in the first quarter of 2013 “ the seasonally adjusted general government deficit to GDP ratio was -3.5 % in the euro area (EA-17) and -3.8 % in […]Economic recovery won’t tackle youth unemployment problem
June 1, 2013 by Leave a Comment
Eurozone unemployment rate rose by one decimal point in April reaching 12.2%, from 12.1% in March. This development does not constitute a strong indication that recession in euro area is getting worse. For one thing the rise of the rate of people without a job is very slight and falls in the margin of the […]Inflation and interest rates indicate urgent need for action
May 2, 2013 by Leave a Comment
Inflation indices are a measure not only of the rate of change of consumer prices. In organised economies like Eurozone inflation is a good indirect measurement of economic activities. A bit more inflation above the benchmark of 2% is a good indication that the economy is growing, the opposite for measurements below that level. Inflation […]Is Eurozone heading for disinflation?
April 3, 2013 by 1 Comment
It will be very interesting to hear what the governor of the European Central Bank, Mario Draghi, has to say tomorrow in his monthly Press conference, about the fast falling inflation rate and the even faster growing unemployment in Eurozone. Unless he sticks to the letter of ECB’s Statutes and insists, that unemployment does not […]South Eurozone needs some…inflation and liquidity
March 16, 2013 by Leave a Comment
As it was expected, Eurostat proved to be right in its last week’s estimate that February yearly inflation was less than 2% on the average in the 17 member states Eurozone. As a matter of fact yesterday’s announcement of the EU’s statistical service revealed that February inflation was 1.8%. Inflation rates diverged wildly between the […]Inflation keeps falling in Eurozone
March 1, 2013 by Leave a Comment
The downwards trend of Eurozone’s inflation rate is an infallible witness of the strong competitive base of home production on both fronts, that is manufacturing production and services. According to Eurostat, the EU statistical service, “The euro area annual inflation rate was 2.0 % in January 2013, down from 2.2 % in December 2012. A […]Draghi sees inflationary bubbles
February 19, 2013 by Leave a Comment
The governor of the European Central Bank, Mario Draghi, speaking yesterday in the Economic and Monetary Affairs Committee of the European Parliament, in an unexpectedly strong statement said that the euro area is still open to “potential inflationary bubbles”. He then added that “the possible effects of Euro exchange rates on inflation must be monitored […]Inflation not a problem for Europe
January 17, 2013 by Leave a Comment
The downward trend of Eurozone inflation was confirmed yesterday by Eurostat, the statistical service of the European Union. According to this source “Euro area annual inflation was 2.2% in December 2012, the same as in November. A year earlier the rate was 2.7%. The EU27 annual inflation was 2.3% in December 2012, down from 2.4% […]
