Tuesday, January 31, 2017

Inflation rate rises to highest level since February 2013 – FAZ – Frankfurter Allgemeine Zeitung

Luxembourg (dpa) – Driven by rising energy prices, Inflation in the Euro area rose in January surprisingly strong. Consumer prices climbed by 1.8 per cent measured on the same month last year, as the European statistical office Eurostat announced. This is the highest Rate since February 2013.

In December, had increased consumer prices by 1.1 percent. Economists had expected in January, with an increase in the Rate of only 1.5 percent. The core rate, the fluctuation-prone variables such as energy and food “excludes”, was in January, unchanged and as expected at 0.9 percent.

with a Particularly strong rise in energy and food prices. Thus, the energy prices rose by 8.1 percent year-on-year. However, they had fallen at the beginning of 2016 is very deep, what is now, a boost like an automatic price. The prices for food, alcohol and tobacco rose by 1.7 per cent.

With the recent price increase has reached the Inflation target of the European Central Bank (ECB). The ECB is aiming for the Euro area an inflation rate of just under two percent, not more it has achieved, but for about three years. This is one reason why the Central Bank has eased its monetary policy.

The higher Inflation is likely to fuel the debate about an exit from the very loose monetary policy. So far, the ECB makes no move to signal a reversal of the trend. She had last directed more to the still low core inflation. “This suggests that the governing Council will not initially respond to the jump of the inflation rates,” said Ralf Umlauf, an Analyst at Landesbank Hessen-Thüringen (Helaba). Finally, the total am driven inflation, “massive” by the energy price development.

Commerzbank Analyst Christoph’s supposed to Because that from March of the energy vapors prices will be effect on the inflation rate. In the summer, the inflation rate should fall again. “The face of uncertain inflation Outlook, the ECB is probably only a change of course in monetary policy when core inflation is rising in a sustainable way”, it’s supposed to Because. A sustainable increase in the rate of inflation, Commerzbank expected until after 2018. The ECB is likely to hold, therefore, about the year 2017, in addition to their loose monetary policy, the expert predicts.


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