In the euro area, prices fell in December, annual inflation was, according to an initial estimate of the EU’s statistics office Eurostat the EU’s statistical office Eurostat -0.2%. To make measured by the change in consumer prices compared with the previous month’s figure was the first time in October 2009 again negative. In November, the inflation rate was 0.3%.
oil prices as the cause
is attributable to negative inflation on energy prices, according to Eurostat, according to an annual decrease of 2.6% fell in November in December due to the drop in oil prices by as much as 6.3%. Core inflation, which hides the volatile prices for energy, food, alcohol and tobacco, however, is even increased slightly, from 0.7% in November to 0.8% in December. This is due to the prices of services, which rose by 1.2% in December compared to the same month last year. The prices of industrial goods remained unchanged.
No deflation, however. , .
In this context, it would be wrong already proclaiming deflation. From Deflation Economists speak only when it comes to a general, significant and sustained decline in the price level. The phenomenon is feared because a downward spiral of prices can be set in motion and because consumers and investors to postpone purchasing decisions in the expectation of further falling prices.
The most recent data, however, are likely to simmering fears of such a deflation or at least one prolonged period of very low inflation stir. Thus, there is fear that the decline in energy prices could swiftly transferred to core inflation. Even for months, the overall inflation is now well below the value of “below but close to 2%”, the European Central Bank (ECB) medium-term aims than average. The negative December inflation should therefore increase the pressure on the ECB to quickly another stimulus package, to decide on a “quantitative easing” of monetary policy about their purchase of government bonds. Eagerly awaited in this regard the next meeting of the Governing Council on 22 January
The sharp decline in oil prices, however, also has positive effects. It lowers costs for businesses and allows the consumers more purchasing power for another, what could be the sluggish economy in the euro area to pick up somewhat.
Unemployment in EU drops
That would be such a welcome stimulation, the same day show, Eurostat published data on unemployment. Thereafter, the seasonally adjusted unemployment rate in the euro area in November from the previous month, remaining at the high level of 11.5%. This is after all, a decline compared to November 2013 when the rate was 11.9%. Throughout the EU unemployment fell during the month to 10.0% after the rate was 10.7% in October 2013 and 10.1% in November.
The EU-wide lowest rates for the month Austria with 4.9% and Germany 5.0%, the highest values were recorded in Greece with 25.7% (but in September, more recent data are not available) and Spain with 23.9%.
No comments:
Post a Comment