- Barclays
Factory gate prices in the Euro land continued to decline in July, suggesting weak inflation pressures in the currency bloc. Measured on a monthly basis, factory gate inflation slid 0.1% in the reported month, compared with the flat reading in the preceding month. In annual terms, the producer price index declined 2.1%, with the gauge remaining in red territory since June 2013. Meanwhile, consumer prices in the Euro bloc ticked up a mere 0.2% on an annual basis in August, while core inflation, which excludes volatile food and energy, climbed 1.0% in August. The headline inflation has also been in what the ECB calls the 'danger zone' - below 1% since October 2013.
A separate report showed the number of registered unemployed in Spain, the Euro zone's fourth biggest economy, climbed for the first time in seven months. Measured on a monthly basis, the number of unemployed increased by 21,700 in August following a considerable drop of 74,000 in the preceding month. In spite of the declines in jobless numbers seen over the past months, Spain's unemployment rate of 22% remains the second highest in the EU after Greece. Spain is one of the fastest growing economies in the Euro zone, with growth estimated to be more than 3% this year. However, the fight with high unemployment is one of the biggest challenges for Mariano Rajoy, Spain's prime minister, to ensure victory is the Spanish general election later this year.
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