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Euro area inflation revision - warning signal for ECB
Last revision of inflation data for euro area sends warning signals to European Central Bank, Bloomberg reports. Prices excluding volatile components grew in June less than was reported before.
Last revision of inflation data for euro area sends warning signals to European Central Bank, Bloomberg reports.
Prices excluding volatile components grew in June less than was reported before. Core rate fell to 0,9%, which is the lowest level in two months. Earlier 1% rate was announced. In May the core inflation reached 1,1%.
Headline inflation stayed at 2%.
Growing confidence in future perspectives of inflation was the main reason why ECB's leaders announced about its decision to slowly cancel economic stimulus. ECB's President said earlier that combination of record low interest rates and large scale assets purchase had positive influence on economy, which will stimulate inflation rate till the end of this years.
Last revision of inflation data might make ECB to take more careful steps in implementing its plans.