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Consumer Prices in the Eurozone Decreased

Consumer prices in the Eurozone decreased below expectations in September. Incentive package discussions increase the pressure on ECB.

Consumer Prices in the Eurozone Decreased
Yazar: Elif Dinçer

Yayınlanma: 2 Ekim 2020 18:33

Güncellenme: 6 Kasım 2024 08:04

Consumer Prices in the Eurozone Decreased Consumer prices in the Eurozone decreased below expectations in September. Pressure is rising on the European Central Bank, which is discussing whether to increase incentives to support recovery from the coronavirus recession. Consumer prices in the Eurozone fell more than economists' predictions in September. Pressure is increasing on the European Central Bank (ECB), which is discussing whether to increase incentives to support recovery from the coronavirus recession. Consumer prices fell 0.3 percent, below the median estimate of economists surveyed by Bloomberg. While the service sector in particular lowered consumer prices, some food and energy prices also declined compared to the previous month. The core indicator hits the bottom with minus 0.2 percent. Weak inflation can be partially explained by technical reasons such as a temporary sales tax reduction in Germany. On the other hand, it draws attention to the appreciation of the euro, which reduced import costs with weak demand. Two-year Treasury bonds in Germany maintained their gains, with interest rates at minus 0.71 percent, a week's low. European Central Bank President Christine Lagarde claimed that prices in the region will decrease in the coming months, but will rise again in early 2021.
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