(MENAFN– ecpulse) Euro area inflation took further steps away from the ECB target in August, putting more pressure on policymakers to adopt new measures.
CPI estimate for the year ended August slipped to 0.3 percent, the lowest since October 2009, moving in line with analysts’ forecasts, from 0.4 percent in July.
The annual core CPI reading edged up 0.9 percent from 0.8 percent increase in July.
Draghi said last week illustrated that the bank would intervene by introducing new measures if inflation outlook worsened.
The European Central Bank said it hired BalckRock Inc., the world’s biggest money manager to give advice regarding the design and implementation of a potential ABS-purchase program.
Mario Draghi’s comments on possibly easing austerity measures have been “over-interpreted,” German Finance Minister Wolfgang Schaeuble said in an interview published on Tuesday.
In June, The ECB decided to cut its key interest rates, targeted longer-term refinancing operations, preparatory work related to outright purchases of asset-backed securities and a prolongation of fixed rate, full allotment tender procedures.
Next month, the ECB will released its newest inflation and growth forecasts after the recent developments.
Data released yesterday showed that euro area confidence dropped more than forecasts in August amid the ongoing geopolitical tensions in Ukraine and worries of the low inflation in the 18-nation region.
As of 09:10 GMT, the euro traded slightly higher versus the U.S. dollar around 1.3185, following its drop to a low of 1.3150 this week.
Other reports from the euro region signaled that unemployment stood at 11.5 percent in July.
In Italy, unemployment rate rose above forecast to 12.6 percent in July from 12.3 percent, while German unemployment unexpectedly rose in August by 2,000, following a revised 12,000 rise in July.
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