Monday, 29 February 2016
The pull of the fall in oil prices is not without consequences: In February, moved the development of consumer prices in the euro area for the first time since September 2015 back into negative territory. The ECB gets into a tight spot.
Questionable development in the Euro zone: Consumer prices fall after four months back in the minus zone back. In February, on annualized inflation fell to minus 0.2 percent, as the statistics agency Eurostat announced in a first estimate.
Ahead Economists polled had expected on average at a rate of 0.0. In January, the cost of living was still rising at an annual rate of 0.3 percent. Deflationary trends had last measured in September 2015 Eurostat. At that time, consumer prices as measured by the Harmonised Index of Consumer Prices (HICP) of the Statistics Authority, annualized declined by 0.1 percent.
The core rate is to
The so-called core inflation, the highly volatile prices, spares, had recently to also noticeably. The core inflation (excluding prices of energy, food, alcohol and tobacco) fell in February from 1.0 to 0.7 percent. Economists had expected here a rate of 0.9 percent. The decline in prices for energy accelerated in February, prices fell over the year by 8.0 percent after. In January, the decline amounted to only 5.4 percent.
The European Central Bank (ECB) is targeting as the ideal value for inflation in the medium term at a rate of just below 2.0 percent. This brand is for central bankers, investors and consumers shifted but has long been in the distant future.
What is the ECB do?More about
Larger screws may ECB chief Mario Draghi to the key interest rate by no longer move: But because the relevant rates are already near zero, the ECB buys bonds each month for around 60 billion euros. and thus the risks – – the measure is officially to boost lending, but the total assets expanding the central bank dramatically from
President Draghi has indicated that the ECB reloading at the meeting on 10 March and. for example, might extend the purchase program or press the deposit rate even deeper into the area below zero. For the full year 2016, the central bank has estimated an inflation rate of 1.0 percent in December. This forecast is shaking now strong. If she cashes in March, the proponents would provide an even looser monetary policy further arguments.