Stock Market News
European CPIs suggest lower than expected rise in inflation
14-05-2014 09:42
Add To Google +1 | Tweet |
The latest round of consumer price data from Eurozone member countries show that inflation picked up in April but not quite to the extent analysts had expected.
Germany
German annual inflation as measured by the Consumer Price Index (CPI) rose 1.3% during the month of April compared to 1.0% in the prior month, according to the country's statistics office.
The rise in consumer prices was in line with expectations and confirmed the preliminary estimate released late last month.
Compared to the prior month, CPI fell -0.2% in April.
In European Union harmonized terms (HCPI), prices rose 1.1% on the year, above March's 0.9% but well below the European Central Bank's target of just under 2% over the medium term.
While still considered to be dangerously low, the pick-up in prices for the Eurozone's largest economy suggests that the finalized reading for the entire region will also confirm a small pick-up.
Spain
The pick-up in prices was more significant in Spain, where the HCPI rose by an annual 0.3% compared to a -0.2% contraction in the prior month. Nonetheless, this was widely expected.
France and Italy
However, the harmonized CPI (annual) for France, released on the same day, was one decimal point lower than expected at 0.8% as was the Italian HCPI, released on Tuesday, at 0.5% compared to the 0.6% expected.
Overall, consumer prices appear to have picked-up but not at the pace that was expected.
If the Eurozone's CPI for April is revised lower from the preliminary estimate of 0.7%, it would add more pressure for the ECB to announce new monetary stimulus.
A report by The Wall Street Journal on Tuesday showed that the Bundesbank was open to measures such as a cut to the main lending rate, a cut to the deposit rate, or the purchase of packaged bank loans if needed, especially if ECB staff inflation projections for 2016 were lowered.
ECB President Mario Draghi said last week that he was "comfortable" with making such a decision in June's policy meeting.
The Eurozone's final CPI reading for April will be released on Thursday.
JP
Germany
German annual inflation as measured by the Consumer Price Index (CPI) rose 1.3% during the month of April compared to 1.0% in the prior month, according to the country's statistics office.
The rise in consumer prices was in line with expectations and confirmed the preliminary estimate released late last month.
Compared to the prior month, CPI fell -0.2% in April.
In European Union harmonized terms (HCPI), prices rose 1.1% on the year, above March's 0.9% but well below the European Central Bank's target of just under 2% over the medium term.
While still considered to be dangerously low, the pick-up in prices for the Eurozone's largest economy suggests that the finalized reading for the entire region will also confirm a small pick-up.
Spain
The pick-up in prices was more significant in Spain, where the HCPI rose by an annual 0.3% compared to a -0.2% contraction in the prior month. Nonetheless, this was widely expected.
France and Italy
However, the harmonized CPI (annual) for France, released on the same day, was one decimal point lower than expected at 0.8% as was the Italian HCPI, released on Tuesday, at 0.5% compared to the 0.6% expected.
Overall, consumer prices appear to have picked-up but not at the pace that was expected.
If the Eurozone's CPI for April is revised lower from the preliminary estimate of 0.7%, it would add more pressure for the ECB to announce new monetary stimulus.
A report by The Wall Street Journal on Tuesday showed that the Bundesbank was open to measures such as a cut to the main lending rate, a cut to the deposit rate, or the purchase of packaged bank loans if needed, especially if ECB staff inflation projections for 2016 were lowered.
ECB President Mario Draghi said last week that he was "comfortable" with making such a decision in June's policy meeting.
The Eurozone's final CPI reading for April will be released on Thursday.
JP
Related share prices |
---|
Stock News is provided by Digital Look Corporate Solutions from Sharecast news. Please read the terms and conditions of useage of this data. Republication or redistribution of content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Digital Look Ltd.
Get a free widget for your website with our latest headlines.
You can now add our live prices and new headlines to your website.The news widget features quotes for Oil prices, spot Gold price and Indices plus a choice of news channel for healines.
Top Shares pages
- Share price quotes
- Share charts
- Share watch list
- Company Results Calendar
- Top Large UK Shares
- UK Market Sectors
- Stock market news
- Company news
- Share tips
- A-Z company search
More share features
POPULAR Share Prices
- Royal Mail share price
- Lloyds share price
- HSBC share price
- Barclays share price
- Prudential share price
- Santander share price
- RBS share price
- Diageo share price
- Standard Life Share Price
- BP share price
- Vodafone share price
- British Airways
- Centrica share price
- Tesco share price
- Taylor Wimpey Share Price
- National Grid
- GKP Share Price
- Marks and Spencer
- Rolls Royce
- Rio Tinto
- Morrisons Share Price
- Aviva Share Price
- LGO Share price
- Tullow Oil Share Price
- SXX Share Price
- Easyjet Share Price
- Next Share Price
- Thomas Cook Share Price
- SSE Share Price
- IAG Share Price
- Bat share price
- Monitise Share Price
- Kingfisher share price
- Dragon Oil share price
- UKOG share price
- SOLG share price