The European Union’s statistics agency Eurostat estimated that prices in the 19-country currency bloc rose 1.6 percent in December on the year, slowing from 1.9 percent in November.
The slowdown was sharper than expected by a Reuters poll of economists that pointed to a 1.8 percent inflation in December.
The unexpected fall brings inflation below the European Central Bank target of a rate below, but close to 2.0 percent.
However, the core indicator watched closely by the ECB for its monetary policy decisions, which excludes volatile energy and food prices was stable at 1.1 percent in December, and in line with market expectations.
A narrower indicator that excludes energy, food, alcohol and tobacco was also stable at 1.0 percent, matching forecasts.
Inflation slowed mostly because of easing energy prices which rose 5.5 percent year-on-year in December after a 9.1 percent rise in November.
The ECB’s interest rates are set to remain at low levels as long as needed to bring inflation back to its target, ECB policymaker Benoit Coeure said on Friday, before the inflation figures were released.
Eurostat’s flash estimate does not include a monthly calculation.
In a separate release, Eurostat said industrial producer prices dropped in November by 0.3 percent in the euro zone on the month, more than the 0.2 percent fall forecast by economists polled by Reuters.
The drop followed a 0.8 percent increase of prices in October. On the year, prices went up by 4.0 percent in the euro zone in November, Eurostat said.
Published in Daily Times, January 5th 2019.
He further submitted that the Punjab government had not only raised the prices of bags…
Federal Secretary for Religious Affairs, Dr. Ataur Rehman has said that around 68,800 Pakistani pilgrims…
The Securities and Exchange Commission of Pakistan (SECP) has said that equitable access to quality…
Haylee Matthews's all-round performance helped West Indies Women beat Pakistan in the third T20I by…
Citing Kashmir and Palestine, Pakistan has told a key UN committee that States were resorting…
The Overseas Investors Chamber of Commerce and Industry (OICCI) underscored the critical importance of fostering…
Leave a Comment