Eurozone inflation rises past ECB target on energy and food costs
Brussels/Frankfurt — Eurozone inflation rose to its highest rate in more than a year this month as surging energy prices pushed price growth above the European Central Bank’s (ECB) target, even if only temporarily, data from Eurostat showed on Friday. Inflation in the 19 countries sharing the euro rose to 2% in June from 1.9% a month earlier, in line with analyst expectations, as a big surge in energy costs more than offset a muted rise in the price of services and industrial goods. The ECB targets inflation at just below 2% and has unleashed unprecedented stimulus to revive price growth, which has missed this target for five years running after a double-dip recession. While the latest figures are in line with its objective, inflation is set to slow as the one-off rise in energy costs passes through the numbers. Indeed, inflation is not expect to hit the ECB’s target in a more sustainable way before 2020, suggesting that any removal in central bank stimulus will be incremental, at b...
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