Berlin (Reuters) – Prices in Germany increased hardly and bring the ECB before the first interest rate meeting in the new year under increasing pressure. The inflation rate fell in December to only 0.2 percent, the Federal Statistics Office announced on Monday. This is the lowest level since October 2009. For the full year, prices rose by an average of 0.9 percent and – as small as since the 2009 recession anymore. This was significantly influenced by the price fall in the oil, which has cheapened within six months by about half. In December, energy prices fell by 6.6 percent in this country for the previous year.
The oil price decline has recently accelerated. North Sea oil was to have beginning of the week with $ 54.44 per barrel so cheap not seen since May 2009. What pleases the motorist, the European Central Bank (ECB) provides. She is increasingly coming under pressure to pump more money into the financial system and thus to guard against a harmful economic decline in prices across the board. The pressure is likely to increase, the rate of inflation for the euro zone, which will be announced on Wednesday should fall below zero. “This would increase the likelihood that the ECB January 22, announces the purchase of government bonds,” says analyst Jennifer McKeown of Capital Economics. Expressed in the currency market speculation of further ECB cash injections the euro earlier this week for the first time less than 1.20 dollars.
The ECB sees stable prices at an inflation rate of just under two percent guaranteed, missed this goal, however, for some time significantly.
AT ECB off alarm Siren
In some countries, the euro zone’s prices are already falling – as in Spain, where the previous year fell 1.1 percent in December. The data from Germany and Spain can expect an inflation rate of minus 0.1 percent in December for the euro area according to estimates by Commerzbank economist Marco Wagner. This should be at the ECB, the shrill sirens: The guardian of the euro want with all their might avoid deflation, or a spiral of ever-falling prices across the board. This could cripple the economy, as declining sales and earnings could be the result. The monetary authorities have lowered the benchmark interest rate to a record low of 0.05 percent and decided to purchase mortgage-backed securities and mortgage bonds. If she soon should now buy government bonds on a large scale, they could with such a flood of money fuel inflation and at the same time artificially stimulate the economy flat ones.
The economy Lars field called “Handelsblatt” the ECB, however, with a view the election in Greece, not to decide already on 22 January on the controversial purchases of government bonds. “If the ECB were to decide three days before the election comprehensive government bond purchases, which would be very damaging to their reputation,” he said. Finally, the ECB must prepare for a Greek exit from the euro. The Greek Politicians Alexis Tsipras, whose party currently leads in the polls, had announced a price reversal for the case of an election victory. He will then negotiate with donors over a debt waiver and end the austerity measures.
© Thomson Reuters 2015 All rights reserved.
No comments:
Post a Comment