Euro area Inflation rises slightly

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Inflation

Euro area Inflation rises slightly

Despite the cash flow of the ECB are the prices in the Euro Zone to the beginning of the year only increased slightly. What is good for the consumer is a concern to the monetary authorities. The monetary policy is relaxed further?

The upward trend in prices in the Euro area at the beginning of the year slightly increased. The annual inflation rate rose in January to 0.4 percent, the EU statistical office Eurostat on Friday in a first estimate, in Luxembourg announced.

This is the strongest increase since October 2014. Nevertheless, the European Central Bank (ECB) is still far from its goal of a rate of inflation of less than two percent away, which is considered optimal for the economy. In December, the annual rate of inflation is only 0.2 percent.

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For many years, Inflation in the Euro area is significantly below the mark of two percent, the European Central Bank is aiming for. The ECB follows perhaps the wrong goal? (28.01.2016)

The German retailers in the past year, the highest increase in sales for 21 years. Also in 2016, the trade Association for solid growth. (29.01.2016)

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This is due to the cheap Oil

Year-on-year goods services in January to 1.2 percent and food, alcohol and tobacco by 1.1 percent more expensive. Falling energy prices keep the Inflation to continue on a Mini-level: energy in January was 5.3 per cent lower than in the same month last year. In December, the price decline, however, with a 5.8 per cent is still far stronger.

What the consumer happy is for the Euro-guardians reason to worry. You want to prevent a downward spiral of falling wages and faltering investment is created, the the economy to years of stalling. Given the decline in the prices of raw materials, experts expect that the ECB to its inflation target miss. Even a One before the decimal point is in the short term probably unrealistic, says chief economist Alexander Krüger of the Bankhaus Lampe: “For the next few months will be for the ECB, at least, an extremely difficult undertaking.”

Money is still loose made

Central Bank President Mario Draghi has already hinted that the monetary authorities in their monetary policy to the test and may in March, further easing will decide. There is a risk that the drop in prices for Oil also in other product groups set could and thus a downward spiral in motion would be. The to 1.5 trillion euros-scale program of the ECB for bonds and other securities runs until the end of March 2017. This is supposed to stimulated the economy and Inflation is fueled. Observers expect that the ECB in March, the Strafzins for banks tightened the money for your Parking. So, they should be brought to more loans.

zdh/ul (dpa, rtr)