Home > EU > Euro zone inflation rise not convincing says ECB

Euro zone inflation rise not convincing says ECB

Written by Business World, on 19th Jan 2017. Posted in EU

article headline

Rising inflation in the euro zone is primarily being driven by fluctuating energy prices and there are no signs it is sustainable, European Central Bank President Mario Draghi said on Thursday.

"There are no signs yet of a convincing upward trend in underlying inflation," he told a news conference.

"Headline inflation is likely to pick up further in the near term, largely reflecting movements in the annual rate of change of energy prices. However, measures of underlying inflation are expected to rise more gradually over the medium term."

The ECB has been pumping money into the euro zone economy in order to boost inflation, which at one point was threatening deflation.

The statement helped push the euro down against the dollar and it hit a 10-day low against sterling. (Reuters)

Source: www.businessworld.ie

About us

More articles from EU

image Description

EU looks to new chapter in relations with Britain as Brexit deal is signed

Read more
image Description

EU shares jump on US stimulus aid support and Brexit deal relief

Read more
image Description

Last-minute fishing hitch delays announcement of Brexit deal

Read more
image Description

EU makes preparations to put in place any UK trade deal from Jan. 1

Read more
image Description

Taoiseach says Brexit gap wide on fish but deal still likely

Read more