The inflation rate in the euro area during the month of May is expected to record a slight increase, while maintaining a negative value for the second consecutive month.
According to the published preliminary estimate Tuesday by Eurostat, the annual inflation rate in May in the euro area stood at -0.1%, slightly above the -0.2% April. In March, this indicator had been zero.
The inflation rate which excludes the most volatile goods (energy, food, alcohol and tobacco) also rose lightly from 0.7% to 0.8 %.
the maintenance of inflation at such low values (and even negative) is the main concern for the leaders of the European Central Bank, whose mandate to ensure that the inflation rate is in values “below but close to 2%” over the medium term.
in an effort to raise the inflation rate, the ECB put interest rates that lends money to banks to zero and may even in some circumstances apply negative interest rates if banks show that are lending money to businesses and households. The ECB is also injecting more money by buying assets (especially government bonds) in markets worth 80 billion per month.
On Thursday, the board of ECB governors It meets in Vienna, Austria, not expecting a change of stimulus measures currently in force. Those in charge of the ECB have already taken a stronger rise in inflation should only happen closer to the end of the year and, in addition, have seen some indicators such as consumer confidence and business, to finally give some positive signs.
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