Eurozone CPI rises to four-year high as expected

Mar 04, 2017, 00:47
Eurozone CPI rises to four-year high as expected

With overall savings of five trillion euros and interest rates at zero, an inflation of 2.0 percent means German savers are basically losing 100 billion euros per year, Bavaria's Finance Minister Markus Soeder said on Wednesday.

The EU28 unemployment rate was 8.1 percent in January versus 8.2 percent in December.

Inflation in the 19-nation bloc touched 2% in February, details Eurostat, up from a rate of 1.8% the month before and the highest since January 2013 and is slightly above the ECB's target of just below 2%.

ECB President Mario Draghi has previously warned that the central bank will not tighten policy in response to a "short lived" surge in inflation.

Inflation in Germany rose in February, reaching its highest level in four-and-a-half years, mainly due to more expensive energy and food. Figures released Thursday by Eurostat showed the eurozone's jobless rate held at 9.6 percent in January, its lowest level since May 2009.

Though the inflation rate's rise in recent months has surprised many observers, there is a consensus that inflationary pressures will start to fade in the middle of 2017 when prior oil price rises fall out of the annual comparison.

Trump Budget Proposal Would Slash EPA Funding, Programs
Fourteen separate EPA partnership programs to reduce greenhouse gas emissions could also be on the chopping block. Environmentalists, meanwhile, are anxious that the oil and gas industry has Pruitt's EPA in its pocket.

Muslim American-led Campaign Raises Thousands for Vandalized Jewish Cemetery
Muslim activists raised more than $78,000 as of early Wednesday afternoon to help fix a vandalized a Jewish cemetery near St. The Jewish community in Missouri is on alert after more than 100 headstones were knocked over in a historic Jewish cemetery.

Battle Against ISIS In Mosul: Iraqi Forces Advance on Airport
It is expected that forces from the Counter Terrorism Service will once again play a key role in the push into western Mosul. Iraqi rapid response forces are seen through a shattered glass window of a military vehicle south of Mosul on Monday.

She said the firm expects the bank will keep its commitment to its continuing its bond buying programme until the end of the year, and longer if necessary.

Analyst Michael Schubert at Commerzbank said that while some ECB council members want the bank to start thinking about ending its extraordinary stimulus efforts, "our analysis indicates that opponents of an early exit have a solid majority" on the bank's 25-member governing council.

February was the third straight month the rate rose higher than expected, said FawadRazaqzada, market analyst at Forex.com. Those figures are due on Thursday.

In December, the European Central Bank announced an extension of its bond-buying program to the end of this year from a tentatively scheduled conclusion in March, although it cut the monthly value of purchases.

The ECB is now coming under increasing pressure - particularly from the German government - to scale back on that stimulus. A sustained rebound in German inflation gives Bundesbank President and European Central Bank rate setter Jens Weidmann more grounds to argue for a reduction in the bond-buying programme, a scheme that he has often criticised. But he underlined Wednesday what he considers the unwanted side effects of the ECB's efforts.

Markit economist Trevor Balchin said he expected Germany's quarterly growth rate to accelerate to at least 0.6 percent in the first three months of 2017 from 0.4 percent in the final three months of 2016.

YOU MIGHT ALSO LIKE
  • SoundCloud Go Gets Cheaper At $5 Per Month

    Soundcloud writes, "The new SoundCloud Go plan gives you the first, fully on-demand listening experience at this price point". SoundCloud launched the original Go in late March 2016 after nailing down licensing deals with most recording stakeholders.
    Five Takeaways: Tottenham Rout Stoke 4-0 Again this Season

    Five Takeaways: Tottenham Rout Stoke 4-0 Again this Season

    And the 23-year-old was delighted with his team's response to that disappointment, telling Sky Sports: "It was important".

    Man Stabbed To Death In Apparent Dispute Over Unpaid Rent

    Despite his prominence in the local community he was no stranger to legal problems. He studied at the City College of NY , and then started his real estate business.
  • Palo Alto Networks Inc's (PANW) Management Points Finger At GTM Strategy

    Also weighing on the stock - which is down 7% in electronic trading - is the firm's 2017 forecast for Exondys 51, its only drug. Wunderlich Capital Managemnt increased its stake in shares of Palo Alto Networks by 83.7% in the second quarter.

    Labour leader lists 7 ways Nigeria can sanction South Africa over xenophobia

    He added: "In Nigeria , there are leading big businesses owned by South Africans, especially those with Cyril Ramaphosa's interests".

    Norwegian Air to offer flights from Bradley to Scotland

    Norwegian has outlined plans to revolutionise transatlantic travel to USA airports, with fares as low as €69 promised. Norwegian Air will operate all flights with a new single-aisle airplane, the Boeing 737 Max.
  • S Korean Foreign Minister to Raise Issue of N Korea's Chemical Weapons

    S Korean Foreign Minister to Raise Issue of N Korea's Chemical Weapons

    Police previously said the airport had not been decontaminated but that passengers should be confident it was safe. The announcement that VX was used in a crowded airport generated alarm in Malaysia and around the world.

    France wants Obama for president

    We want people to wake up in the morning and, rather than have to see our usual candidates, rejoice in seeing Obama's face on... Now a petition is calling for an even bigger plot twist: the return of President Barack Obama.
    Iraq forces reach key Mosul bridge

    Iraq forces reach key Mosul bridge

    The U.S. -led global coalition against the Islamic State carried out dozens of airstrikes on Monday, Iraqi officials said. In Iraq, more than a thousand civilians have fled western Mosul as Iraqi troops push deeper into ISIL held areas.
  • Case-Shiller: Home prices set 30-month high in December

    Case-Shiller: Home prices set 30-month high in December

    Since 1975, the average pace is 1.3 percent; about two-thirds of the time, the rate is between -4 percent and +7 percent. The index's 10-city and 20-city composites each saw home prices increase 0.9%, on an adjusted basis, month over month.

    Tag for Berry and Poe to FA?

    Ian Rappaport of the NFL Network is reporting that the Chiefs are working to make Berry the highest-paid safety in the NFL . Charles subsequently underwent arthroscopic knee surgery and Spencer Ware closed out the season as the Chiefs' feature back.

    Derrick Lewis continues vicious trolling of Travis Browne

    Following the fight, Lewis took to social media where he posted an edited photo of Browne laid out on the canvas. Lewis was riding a five fight win streak going into the fight, winning four by stoppage.
popular