Eurozone inflation above European Central Bank's target

Pound to euro exchange rate graph
Eurozone inflation above European Central Bank's target
Author

04 March, 2017

The European Union's statistics agency Thursday said consumer prices were 2.0% higher in February than in the same month a year earlier, the highest rate of inflation since January 2013 and a pickup from 1.8% in January 2017. Core inflation - which strips out volatile fresh food and energy costs - was up 1.3 percent, an increase from January's 1.2 percent.

However, that acceleration was mostly down to a 9.2% rise in energy and a 5.2% rise in food prices over the year. "After its meeting next week, the ECB is likely to reiterate its view that the latest pick-up in inflation will be transitory and we see the Bank carrying out this year's asset purchases as planned". If in the coming months inflation remains high (some market analysts, however, believe it reached a peak in February), the European Central Bank, which next week will present its new macroeconomic forecasts, and the Bundesbank, expect inflation to return to fall at the end of the year, as the effect of the higher oil prices eases. "Inflation will remain this high in the coming months", Postbank chief economist Marco Bargel said, adding that core inflation would also pick up due to Germany's continued upswing and its robust labor market. Stimulus critics, however, have grown louder as the eurozone economy recovers and inflation nears the bank's goal of just under 2 percent.

In January, Mr Draghi pointed to a new set of criteria arguing that the return to the ECB's inflation goal must be durable, self-sustained and representative of the euro area as whole.

The bank has cut its main interest rate to zero and embarked on the bond-buying programme to try to stimulate growth in the eurozone and avoid deflation, or falling prices.

Iran requests 950 tons of uranium from Kazakhstan
Tehran's purchase of natural uranium is monitored by the International Atomic Energy Agency. The UN agency also confirmed that Iran has lived up to its commitments under the JCPOA.


One dead, two injured in Germany auto attack
Officers tracked him down with help from witnesses and opened fire on the suspect who was "seriously wounded", police said. One person has died and two more were injured after a auto was driven into pedestrians in the German town of Heidelberg.


AMD returns to high-end gaming CPUs with Ryzen 7
The graph from Xfastest also shows how well the AMD Ryzen 5 1600X shapes up in comparison to other similar Intel Cores. More interesting is the single threaded test where it tied the 6900K exactly which lends credence to AMD's IPC claims.


The German central bank has warned that homes in large German cities are 15 to 30 percent overpriced, in a message that stoked further fears about the side-effects of the ECB's stimulus.

The ECB has slashed interest rates and adopted a bond-buying programme worth 2.3 trillion euros to pump money into the region's economy.

Ahead of those elections, the eurozone economy has shown signs of picking up steam, and surveys show businesses expect faster growth to come.

German unemployment fell more than expected in February and the jobless rate remained unchanged at its lowest level since reunification in 1990, separate data from the Federal Labour Office showed on Wednesday.


More news


  • How to make your Pancake Day food waste friendly

    Have no fear, we're here to correct that this Pancake Day thanks to the most Instagrammable pancake recipe out there. Dating back over one millennia Shrove Tuesday is a day of celebration and penitence, the last day before Lent.

    LA Kings trade for Ben Bishop from Tampa Bay Lightning

    Before the Hanzal trade became official, Minnesota coach Bruce Boudreau said it felt good just to have his team back on the rink. The Kings have played without starter Jonathan Quick for all but one game and one period this season because of a groin injury.

    Justice Ginsburg praises media and the role of free press

    Separately, in an interview with the U.K.'s BBC Television, Ginsburg said the US isn't "experiencing the best of times". Ginsburg later apologized for the comments, saying her remarks were "ill-advised" and she regretted making them.
  • Lorde's 'Green Light' is here, and it's a 10/10 banger

    Lorde's 'Green Light' is here, and it's a 10/10 banger

    The Lyrics: I know about what you did and I wanna scream the truth/ She thinks you love the beach, you're such a damn liar . Early on Friday morning (AEDT) the Grammy Award-winning star shared the video for the single " Green Light ".

    Mets' Wright has shoulder injury, won't throw for 2 weeks

    Wright's injury will hamper the club's depth to begin the season, and could present a recurring problem once again for the Mets . At the time, Sandy Alderson called it a mild strain and said the expectation was for Wright to probably miss about three weeks.
    Funeral ceremony for Vitaly Churkin scheduled for February 24 in Moscow

    Funeral ceremony for Vitaly Churkin scheduled for February 24 in Moscow

    After he returned to the foreign ministry in Moscow, he ably parried with Western correspondents at briefings in the early 1990s. At the time, he looked in good health, reporter Alexey Yaroshevsky tweeted Monday.
  • Syrian peace talks flounder as participants ask: Where is America?

    Earlier in the day, representatives of the delegation met with UN Special Envoy for Syria Staffan de Mistura. Government troops are confronted by militants of different armed rebel groups.
    Ukip donor Banks will stand against party's only MP

    Ukip donor Banks will stand against party's only MP

    Meanwhile, Arron Banks has waded into the row with a plan to revitalise Ukip and bring back Mr Farage to spearhead party success. Speaking after the event, he said: "It's not just me".
    Copeland defeat is Blair's fault, says Corbyn ally

    Copeland defeat is Blair's fault, says Corbyn ally

    Conservative Trudy Harrison defeated Labour's Gillian Troughton by over 2,000 votes, in what was considered to be an upset. He said: "Labour's victory in Stoke is a decisive rejection of Ukip's politics of division and dishonesty".
  • Wizards sign PG Brandon Jennings, who was waived by Knicks

    Brandon Jennings , an able passer and penetrator, can also dish assists to open shooters while drawing the defense to him. Though, he can create shots for teammates and push the ball. "I think he will just bring a lot of energy".
    Mt Etna erupts in fiery show of lava

    Mt Etna erupts in fiery show of lava

    Italy's Mount Etna volcano first became active on January 23 and has experienced a series of eruptions ever since. Lava flows and ash fallout can be risky but some people are not anxious by the recent volcanic activity.

    Mobile launching LTE-U in spring 2017 to increase LTE capacity

    Just keep in mind that you're going to need a device that supports LTE-U in order to take advantage of its benefits. Customers can tap into that unused capacity for LTE when Wi-Fi demand diminishes.