Golden Ten Data, August 30 News, the euro area's inflation rate in August fell sharply to the lowest level since mid-2021, when global consumer prices skyrocketed, leading to an unprecedented rise in interest rates. The decline in the annual inflation rate paves the way for the European Central Bank to lower its benchmark interest rate next month, which will be the second interest rate cut by the European Central Bank this year. There are currently signs that the euro area's economic recovery is stumbling. Data released on Friday showed that the euro area's CPI in August increased by 2.2% compared to the same period last year, a decrease from 2.6% in July. This is a new low since July 2021, in line with market expectations. Currently, interest rate setters must balance two major risks. While energy prices have dragged down overall inflation, the inflation rate in the services sector remains high, and policymakers are concerned that if they cut interest rates too quickly, service prices will continue to rise rapidly and prompt workers to demand higher wages by 2025. Another risk is that they cut interest rates too slowly, missing the opportunity to achieve a soft landing for the euro area economy.
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Euro bölgesi enflasyonu Avrupa Merkez Bankası hedefine doğru adım adım yaklaşıyor.
Golden Ten Data, August 30 News, the euro area's inflation rate in August fell sharply to the lowest level since mid-2021, when global consumer prices skyrocketed, leading to an unprecedented rise in interest rates. The decline in the annual inflation rate paves the way for the European Central Bank to lower its benchmark interest rate next month, which will be the second interest rate cut by the European Central Bank this year. There are currently signs that the euro area's economic recovery is stumbling. Data released on Friday showed that the euro area's CPI in August increased by 2.2% compared to the same period last year, a decrease from 2.6% in July. This is a new low since July 2021, in line with market expectations. Currently, interest rate setters must balance two major risks. While energy prices have dragged down overall inflation, the inflation rate in the services sector remains high, and policymakers are concerned that if they cut interest rates too quickly, service prices will continue to rise rapidly and prompt workers to demand higher wages by 2025. Another risk is that they cut interest rates too slowly, missing the opportunity to achieve a soft landing for the euro area economy.