- ECB
The European Central Bank stands ready to alter its QE programme to combat unusually "low inflation" and "disappointing economic growth" in the Euro zone. ECB officials voiced fears that while inflation in the Euro area seems to have bottomed out, the region's recovery remains under threat by the Greek crisis and turmoil in emerging markets.
Consumer inflation in Germany, the Euro zone's powerhouse, remained weak in July, adding to signs that the European Central Bank's QE programme has yet to have its intended effect on German economy. Consumer prices rose 0.2% on month in July, in line with preliminary estimates, and compared with the 0.1% decline in June. In annual terms, German inflation inched up 0.2% in July. The annual CPI print has been in positive territory for six consecutive months, after it plunged in January to the lowest level since July 2009. When measured according to common European standards, or HICP, climbed 0.3% in the reported month. Meanwhile, in France consumer prices continued to be subdued in July on a monthly basis, while annual inflation also eased, according to INSEE. France's EU harmonised annual consumer inflation posted a 0.2% growth in the measured month, lower than the 0.3% rise in June. Measured on a monthly basis, the CPI gauge dropped 0.5%.
© Dukascopy Bank SA