- The euro zone has recorded in February for the third month in a row, falling prices. In Germany the introduction of the minimum wage brakes but deflation.
- Even total, the price decline slowed, mainly because energy compared to the previous year discounted less than in January.
- In addition, a reduction in unemployment in the euro-zone surprising again – and marked the lowest level in nearly three years
Consumers pay less
The prices in the euro area. zone not fall as fast as it was in the beginning. The cost of living fell in February compared to the previous year by 0.3 percent, said the European statistical office Eurostat based on preliminary data. Observers had expected a value of minus 0.4 percent. In January, prices had fallen by 0.6 percent.
It was the third month with falling consumer prices in a row. Recently, there had been several months of price decline in the euro zone in 2009. At that time, prices fell from June to October.
SZ survey in Davos How CEOs see the future of the German economy
energy costs less
Braking was the price decline by higher energy costs, which fell not quite as strong as in the previous month: they declined by 7.9 percent the previous month. . In January, the decline was still at 9.3 percent
Next Governing Council meeting on Thursday
The European Central Bank is likely to see on Thursday with relief shortly before the next meeting of the Council’s Development: It aims at an inflation rate of two percent. Currently, the central bankers want to prevent a large-scale program of buying government bonds that the euro zone slipping into a downward spiral of falling prices and investment. Such deflation can paralyze an economy where consumers postpone their purchases in anticipation of getting lower prices, wages fall and only reluctantly companies invest in new plant and equipment.
The EU Commission expects nonetheless the fact that the Euro-zone slips this year and expected to fall into deflation, consumer prices for the full year by 0.1 percent. 2016 Brussels again expects a positive inflation rate
Peter Praet in SZ interview ECB chief economist defends purchase of government bonds
“precautionary is better than cure so we had to react before the damage occurs. “Peter Praet, the chief economist of the European Central Bank, defends in the” Süddeutsche Zeitung “the controversial decision to purchase government bonds.
Minimum Wage acts falling prices in Germany against
In Germany the prices to the rules for the euro-zone standards were last only lightly. After the German method of calculation even increased slightly. Economists made for the introduction of the minimum wage partly responsible for the drives up labor costs in many service and they led to price increases. In addition, energy is no longer subsidized as strong as before
European Central Bank cheap euro helps Europe
The weak euro is not necessarily bad for Germany. Even the ECB promotes development. Just the ailing euro countries could help the weak euro. But more is needed to end the crisis.
decreases unemployment surprisingly more
At the same time, unemployment in the euro zone fell in January surprisingly again. It reached its lowest level in nearly three years. The unemployment rate was thus by 11.2 percent, as Eurostat announced. In December there were 11.3 percent
Overall, had more than 18 million men and women without a job -. 140 000 less than in December. The lowest unemployment was, according to the equivalent EU Statement in Germany with 4.7 percent, followed by Austria with 4.8 percent. The highest values reported therefore unchanged Greece with 25.8 percent (in November) and Spain with 23.4 percent.
economy The export works as never
Undeterred by all crises has made the German economy last year blinding business abroad. Growth this year will be even higher.
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