Capital Markets

Mnuchin expected to be Trump’s Treasury secretary

Donald Trump has chosen Steven Mnuchin as his Treasury secretary, US media outlets reported on Tuesday, positioning the former Goldman Sachs banker to be the latest Wall Street veteran to receive a top administration post. Mr Mnuchin chairs both Dune Capital Management and Dune Entertainment Partners and has been a longtime business associate of Mr […]

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Banks

Financial system more vulnerable after Trump victory, says BoE

The US election outcome has “reinforced existing vulnerabilities” in the financial system, the Bank of England has warned, adding that the outlook for financial stability in the UK remains challenging. The BoE said on Wednesday that vulnerabilities that were already considered “elevated” have worsened since its last report on financial stability in July, in the […]

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Property

Zoopla wins back customers from online property rival

Zoopla chief executive Alex Chesterman has branded rival OnTheMarket “a failed experiment”, and said that his property site was winning back customers at a record rate. OnTheMarket was set up last year, aiming to compete with Zoopla and Rightmove, the UK’s two biggest property portals. It allowed estate agents to list their properties more cheaply […]

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Financial

Hard-hit online lender CAN Capital makes executive changes

The biggest online lender to small businesses in the US has pulled down the shutters and put its top managers on a leave of absence, in the latest blow to an industry grappling with mounting fears over credit quality. Atlanta-based CAN Capital said on Tuesday that it had replaced a trio of senior executives, after […]

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Banks

BoE stress tests: all you need to know

The Bank of England has released the results of its latest round of its annual banking stress tests and its semi-annual financial stability report this morning. Used to measure the resilience of a bank’s balance sheet in adverse scenarios, the stress tests measured the impact of a severe slowdown in Chinese growth, a global recession […]

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Categorized | Economy

Eurozone inflation climbs to highest since April 2014


Posted on November 30, 2016

A welcome dose of good news before next week’s big European Central Bank meeting.

Year on year inflation in the eurozone has climbed to its best rate since April 2014 this month, accelerating to 0.6 per cent from 0.5 per cent on the back of the rising cost of services and the fading effect of last year’s energy price falls.

This month’s figures have however been dampened by core inflation – which strips out volatile elements such as energy prices and food – remaining stuck at 0.8 per cent for the fourth consecutive month. The figures are a first flash estimate from Eurostat.

Core inflation is closely watched by policymakers at the ECB who have been battling with persistently low inflation for over two years. Faced with weak price pressures, the central bank is widely expected to extend its landmark €80bn a month bond-purchase at the ECB’s December policy decision next Thursday. (More on that here.)

ECB president Mario Draghi said today he expects inflation to reach its target of below but near 2 per cent by around 2018-2019.

“We’re still years away from a return to normal”, said Peter Vanden Houte, chief eurozone economist at ING, who says low inflation has likely bottomed out this year.

Eurostat said energy prices fell 1.1 per cent this month, compared to November 2015, while food, alcohol and tobacco prices climbed 0.7 per cent and industrial goods prices inched up by 0.3 per cent.

The eurozone-wide figures follow on from a flash estimate of German inflation, which remained unchanged at 0.7 per cent this month, matched by France.

Chart courtesy of Bloomberg