- Euro-Area Inflation Rises to 1.5% in August
Consumer prices in the Euro-area rose to its highest in four months in August.
The consumer price index which measures inflation rate in the 19 member nations advanced from 1.3 percent year-on-year in July to 1.5 percent in August, according to the European Union Statistics office.
On a monthly basis, the headline inflation increased 0.3 percent, same as projected by economists.
Inflation rate remains below the 2 percent target of the European Central Bank but rose higher than the preceding month. Indicating that improved economic outlook is aiding prices towards the ECB target and further validate Mario Draghi comments that economic growth would pressure prices over time.
Core inflation, excluding energy, was 1.3 percent year-on-year in the month, also higher than the 1.2 percent projected by experts.
Accordingly, energy prices climbed 4.0 percent on a yearly basis and 0.7 percent month-on-month. While prices in the services sector, the largest sector of the economy, were 1.6 percent up in August. Same as the June and July rates.
Last week, the European Central Bank revised up its 2017 economic growth rate to 2.2 percent, high than the 2.1 percent forecast by economic experts. Another indication of strong investors’ confidence in the Euro-area.
The Euro-single currency maintained its bullish momentum against the Japanese Yen on Monday. Gained about 60 pips to 133.10 price levels. A sustained break of that resistance level would validate bullish continuation as explained in the week outlook here.