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16 Sep 2013
Eurozone inflation numbers ease pressure on ECB
FXstreet.com (London) -Eurozone consumer price index inflation fell to just 1.3 percent last month, easing any pressure on the European Central Bank (ECB) to raise rates. The latest figure represents a further fall from July’s 1.6 percent CPI, and from the ECB’s 2 percent target.
Core CPI, which excludes food, energy, alcohol, and tobacco costs held steady at a seasonally adjusted 1.1 percent in August.
The figures come swiftly after ECB president Mario Draghi addressed a conference in Berlin, reiterating that the central bank would keep rates “at current or lower levels for an extended period of time,” given the continued weakness of the Eurozone economy and elevated unemployment levels within the area.
The figures also showed that Greece remains In a deflationary spiral, with prices falling 1 percent year-on-year. Bulgaria and Latvia also posted negative rates, falling 0.7 percent and 0.1 percent respectively.
European equities markets continued their gains following the results, with the DAX threatening the 8,610 level.
EURUSD peaked at USD1.3380, but will likely struggle to top this, with the bulk of any Eurozone-positive news behind us, and Larry Summers departure-driven dollar selling dissipating as we head into the FOMCs meeting on 17-18 September.
Core CPI, which excludes food, energy, alcohol, and tobacco costs held steady at a seasonally adjusted 1.1 percent in August.
The figures come swiftly after ECB president Mario Draghi addressed a conference in Berlin, reiterating that the central bank would keep rates “at current or lower levels for an extended period of time,” given the continued weakness of the Eurozone economy and elevated unemployment levels within the area.
The figures also showed that Greece remains In a deflationary spiral, with prices falling 1 percent year-on-year. Bulgaria and Latvia also posted negative rates, falling 0.7 percent and 0.1 percent respectively.
European equities markets continued their gains following the results, with the DAX threatening the 8,610 level.
EURUSD peaked at USD1.3380, but will likely struggle to top this, with the bulk of any Eurozone-positive news behind us, and Larry Summers departure-driven dollar selling dissipating as we head into the FOMCs meeting on 17-18 September.