Euro zone inflation unchanged in July

Separate data showed the number of Germans out of work climbed in July but the jobless rate stayed at a post-reunification low of 6.4 percent and economists said this, combined with weak inflation, pointed to stronger consumption ahead.

Capital Economics economist Jennifer McKeown said data from the states suggested annual consumer prices in Europe’s largest economy held steady at 0.1 percent when harmonised to compare with other European countries.

The annual inflation rate was 0.2 per cent, unchanged from June and matching the median forecast of economists in a Bloomberg survey. The market expectation was for no change.

“It’s too soon to declare a real strengthening of core inflation”, he said. Analysts expected that the reading would also remain weak. The single currency was up 0.3 percent at $1.0964 as of 10:40 a.m. London time.

Eurostat’s flash estimate for the month does not include month-on-month calculations.

Earlier now, the worldwide Monetary Fund put it hopes for the price hike fee to be under the ECB’s objective of just below 2 percent by means of 2020, so that it is plan labels are going to increase the stimulation system, which is called qe.

“If inflation dips lower or even fails to pick up in the near term, the European Central Bank could seriously consider taking further stimulative action such as front-loading its QE”, said Howard Archer of IHS Global Insight.

Unemployment and inflation are stable in the 19-nation eurozone, with the level of joblessness in June standing at 11.1 percent for the third straight month. Of the other 15 euro zone countries reporting, unemployment only rose in Lithuania, by 5,000, in Belgium and Finland, each by 2,000, and by 1,000 in France, Portugal and Cyprus.