- Mario Draghi, ECB President
The single currency extended a period of declines against other counterparts on Tuesday, after a report from German Federal Statistical Office unveiled disappointing inflation data, reflecting weak domestic demand and underscoring challenge for the ECB to increase inflationary pressure in the region. Official report showed the Consumer Price Index in Europe's largest economy fell to 1.2% in October from the same period a year earlier, retreating from 1.4% a month earlier, and hitting the lowest since August 2010. On a monthly basis, CPI posted negative growth, falling 0.2% over the corresponding period. The main downside pressure came from price of mineral oil that fell 7%, while in contrary, electricity prices soared 11.5% annually.
Germany accounts almost 27% of the Eurozone's economic output, the most of all other 17 nations. Economic expansion in Europe's powerhouse expanded in line with the flash reading in the second quarter, but slightly above the 0.6% growth predicted by economists. Regarding the future prospects, the economy is likely to continue building up steam on the back of robust private consumption and strong activity in construction activity as well as supported by a pickup in equipment investment. Nonetheless, the latest report supports ECB's forecast of weak inflationary pressure, and justifying the latest rate cut.
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