The first reading pointed to a further decline in the inflation rate, but the data released on Wednesday showed that consumer prices rose 0.4% in August, as in the previous month.
The inflation rate in the Eurozone stabilized at 0.4% in August, revealed this Wednesday, September 17, Eurostat. The first reading pointed to a rate of 0.3%. This braking should relieve pressure on the European Central Bank (ECB) which was being pressed to take action in order to prevent the inflation rate continued to fall and registasse even negative values.
The segments contributed most to the rise in consumer prices were restoration (0.08 percentage points), rents (0.07 points) and vehicle maintenance (0.05 points). On the opposite side were fuels (-0.17 points) and fruit (-0.12 points).
Portugal is among the six eurozone countries that had negative inflation rates. In August, consumer prices fell 0.1% in Portugal. The biggest drop was led by the Spain, where prices fell 0.5%. The opposite side was Austria, whose prices have risen 1.5%, and Finland, where prices rose 1.2%.
This evolution of inflation decreases the fears surrounding the Euro Zone, that deflation concerns. The ECB has removed this scenario, pointing that inflation lower in coming months, but no there is a general fall in prices. But some experts have pointed to the risk of this scenario. The pressure on the ECB to act has increased.
“Inflation continues to be a history of low energy prices, food prices low and not so much a threat” of deflation, said Carsten Brzeski, economist ING chief, quoted by Bloomberg.
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