European Inflation Eases, Led by Energy; Payrolls Stagnate
European inflation has been on the downside and companies are in the spree of hiring and at the same time in a spree to expand their wings.
It was observed that the average rate of inflation in 16 nations has grown to 1.6% from 1.7% in July, as stated by the European Union statistics office in Luxembourg. In an early report on terms of month-to-month, the consumer-price index grew.
The European firms have reportedly been under ECB's medium-term target of just below 2% since December 2008 and since then the price inflation rate grew over by 0.2% in August after dipping from 0.3% in July.
Marco Valli, chief euro-zone economist at UniCredit Research through a report stated: "We remain comfortable with our view that the upward trajectory in food inflation will continue to remain moderate in the coming months, but the recent strong increase in the price of some agricultural commodities starts posing some upside risks to our food CPI projections three to six months out."
ECB supposedly has left its main interest for a record low price of 1% and the ECB on the other hand claims of foreseeing the inflation between 1.5% and 1.7%.