- INSEE
Mixed data came out on Thursday, with inflation readings in the top European countries recording slow growth of consumer price inflation, while unemployment rate in Greece ticked down slightly in June, continuing the positive trend from the preceding month. Consumer prices in Germany rose an annualized 0.8% in August in line experts' expectations and unchanged from the July's reading. On a monthly basis, CPI booked no growth in the reported month, compared with the 0.3% rise in the previous month. Meanwhile, the cost of living in Europe's second biggest economy inched higher 0.4% in August, compared with the 0.3% decline recorded a month earlier. The French economy recorded no growth in the June quarter, the second straight quarter of stagnation. Facing the dismal figures, the socialist government of President Francois Hollande cut its 2014 and 2015 growth forecasts, targeting 0.5% growth for this year. While the core countries continue to disappoint analysts, periphery has been showing signs of tentative improvement. The jobless rate in Greece dropped to 27.0%, down from 27.1% seen in the preceding month. Yet, Greece remains the country with the highest unemployment rate in the Euro bloc. August data showed that Greece's economic growth slowed down 0.3% in the second quarter, compared to a 4% contraction in the same period in 2013. It has been the best result since the third quarter of 2008, indicating contraction of the economy continues to slow and the country could return to growth if the trend continues.
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