- Mario Draghi, ECB President
Producer prices in the Euro zone, which considered to be the first gauge of retail inflation, declined on an annual basis in July, while also inching lower from the previous month. Industrial producer prices retreated again in July on a yearly basis, marking the 13th straight month without growth, with the corresponding gauge falling 1.1% compared to the June's figure of -0.8%. Economists, however, had expected a 1.0% decline. On a monthly basis, the index slid 0.1% in line with expectations and down from June's 0.2%. In the meantime, Spain posted positive news, as the country's unemployment increased less than expected in August. The Spanish labour market has continued to strengthen throughout the summer with the latest data showing that the number of unemployed rose less than expected. Economists had looked at an increase of 21,800; whereas jobless rose by only 8,100 after a decline of 29,800 in the previous month. In August Spain typically faces a jump in unemployment that has averaged 27,000 since 1996.
Following the Monday meeting, French President and ECB Chief both agreed that the recovery in the Euro zone should be supported, and that deflation and weak growth were threatening economic recovery in the Euro bloc. Earlier, Mario Draghi reiterated that the ECB cannot save the economy alone and called on governments - Germany especially, to spend more in order to boost the slackening recovery.
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