Eurozone Inflation Remains Unchanged at 0.1 Percent
Eurozone inflation remained unchanged at 0.1 percent in November. The 19-nation fall short of economists estimate of 0.2 percent according to the European Union’s statistics office in Luxembourg on Wednesday.
It is widely believed that ECB president Mario Draghi will increase quantitative easing (QE), while some economists are anticipating possible raise in bond-buying programme from 60 billion euros a month.
The data shows November inflation was dragged down by low energy prices, especially oil, but this is better (7.3%) when compared with previous month 8.5 percent.
Draghi is expected to step up stimulus to lift inflation as central banks of the 19 nations are determined to fight falling prices in order to avert further decline of the economy.
Although, the manufacturing sector recorded it’s best growth in 19 months in November on Tuesday, and unemployment in the region reduced from 10.8 percent to 10.7 percent in October. More is needed to lift inflation, encourage investments, and spur growth.
Euro single currency dropped against the US dollar by 0.35 percent from yesterday closing price 1.06300 to 1.05805. Investors are currently awaiting ECB decision on further stimulus.
