Eurozone Inflation Even Lower Than Hoped, Central Bank Eyes Monetary Stimulus Again
BRUSSELS (AP) – Official figures show that inflation across the 19-country eurozone was lower in July than anticipated, bolstering expectations that the European Central Bank will provide another shot of stimulus to the single currency bloc next month.
Eurostat said Monday that consumer prices across the eurozone were up 1% in the year to July. That’s down from the original estimate of 1.1% and means inflation is further away from the ECB’s goal of just below 2%.
The core rate, which strips out the volatile items of energy, food, alcohol and tobacco, was even lower at 0.9%.
With growth faltering particularly in Germany, there are growing expectations that the bank will announce another package of monetary stimulus measures including a possible rate cut and bond purchases at its Sept. 12 meeting.