Eurozone Inflation Remains Consistent

By Stewart Douglas

The rate of inflation across the Eurozone has remained steady at 1.9% over the last month.  Prices across the Eurozone, comprising of 13 EU member states, have remained constant throughout June.  This comes as welcome news for the European Commission, given the figures are still well within the European Central Bank targets for the period.

The Eurozone comprises of Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Slovenia, Spain, and is regulated at a policy level by the European Central Bank. 

The Eurozone looks set to expand with growing European economic harmonization, particularly into some of the regions poorest countries, adding to the vast labour market within the Union.

The news comes in the wake of pending European interest rate rises, and in the face of the increasing cost of oil. 

It is also noted that above average economic growth across the region, and restricting labour markets will bring more economic instability to the Eurozone over the coming months, thus justifying the ECBs imminent interest rate decision.

The recent recovery in growth throughout the Eurozone has the potential to lead to widespread inflation.  However, the ECB is said to be keenly monitoring inflation, and is poised to adjust interest rates accordingly, in an attempt to avoid spiraling price rises.

Interest rates in the region look set to rise in accordance with other major economies to keep income inflation in check across the Eurozone.

The Eurozone consumer price index has shown a decrease over June, highlighting the steady economic health in the region.  The European Commission have expressed satisfaction with the slowing rate of inflation, which still remains on course to satisfy the European Central Bank’s 2% target. 

Leisure and vice goods have been held responsible for propping the inflation rate, despite the overall satisfactory picture within the Eurozone economy.