News and Reviews European Economic Zone

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News and Review of European Economic Zone (UK)

 

Interest rate hikes by the BOE May Be Longer Longer

Friday, October 17th, 2014

 

The Bank of England may have to keep interest rates at low levels for a longer time than previously expected to suppress economic opportunities fall into long-term stagnation, according to the Bank of England chief economist Andrew Haldane on Friday. Haldane said today he is more pessimistic about the outlook for the UK economy, due to the weakening global growth rate, financial and political risks are greater and the danger that might arise if wages and productivity continue to not be able to recover as expected.

 

"Simply put, I have become more pessimistic," said Haldane. "This shows that the interest rate may persist at low levels for longer periods of time, much longer than I anticipated three months ago." Comments Haldane was released at the weekend in which the market has pushed back the BOE rate hike expectations for the first time by the end of next year given the global decline in stock prices sharply. Last month the market was expecting the BOE to raise rates early next year. He said that, instead of a normal berkembanga toward expansion, the UK economy at risk "secular stagnation", which means a long period of low growth rate. "If there is uncertainty about the path of the economy, the optimal policy response might be to avoid the worst case scenario," said Haldane.

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News and Review of European Economic Zone

 

European Car Sales Up 6.1%

Friday, October 17th, 2014

 

Car sales in Europe rose 6.1% in September, helped by strong demand in major markets in Europe are Germany, the UK and France, according to data from the Association of European carmakers (ACEA). New passenger car registrations in the EU and the countries of the European Free Trade Area (EFTA) rose as much as 1,269 million vehicles last month, from 1,196 million units a year Earlier, according to ACEA on Friday. European automotive market hit bottom in 2013, ending the decline for 6 years, and has scored growth for 13 consecutive months. However, the recovery is still fragile by the weak level of confidence and geopolitical uncertainty in Russia and others.

 

The level of sales in Germany, Europe's largest market and markat Volkswagen, Daimler, and BMW, rose as much as 5.2% to 260.062 units. The second place was occupied by Britain and France in third place, with each print sebeasr rise 5.6% and 6.3%. The growth rate of approximately 30% in Spain, Portugal, and Greece, triggered by the level of demand for a number of brands, with delivery to VW passenger cars rose as much as 7.5%, Ford gained as much as 6.5%, and owned by General Motors Opel division rose 6.2%. Overall, the level of sales in Europe for nine months rose as much as 5.8% to 9.91 million vehicles from 9:36 million vehicles a year earlier, according to ACE.

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News and Review of European Economic Zone (France)

 

France Sure Approved Budget of Europe

Monday, October 20th, 2014

 

French economy minister Emmanuel macron express the belief that the European Commission will not reject the government's budget deficit in 2015 even though over the limit. Paris predicts the budget deficit will rise to 4.4% of GDP for the year 2014; and will reach 4.3% of GDP in 2015. France has uttered not be able to reduce the government budget deficit ratio to reach the target of 3% of GDP until at least 2017. This means that the French took four years longer than the original promise to lower its budget deficit ratio and potentially rejected by the European Commission.

 

Macron express weakening German economy will make it easy achievement of an agreement between Berlin to Paris on a budget deficit rules. Berlin has cut its economic growth outlook for Germany to 1.2% and 1.3% respectively for 2014 and 2015. Along with the French budget minister, macron will visit Berlin to meet with the finance minister and the German economy. Fiscal discipline is one of the agenda at a meeting of European Union leaders were to begin on Thursday in Brussels.

 

It is important for the French to get the support of the German government budgets. Thes France's commitment to achieve the deficit target has been getting criticism from Austria and the Netherlands. France's call that another country's budget deficit to be patient with the policy even tether a cool reception at a meeting of euro-zone finance ministers in Luxembourg last week.

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News and Review of European Economic Zone (Germany)

 

German Producer Price Index Down As Low Energy Prices

Monday, October 20th, 2014

 

German producer price index continued to fall at an annual rate in September, as energy costs continue under downward pressure, while the index remained stable over the previous month, government data on the show on Monday.

 

Producer prices were unchanged at a monthly rate and down 0.1% at an annual rate, the data show the German statistics office Destatis on Monday. This figure is consistent with the forecast of economists in a Dow Jones Newswires survey.

 

In August, producer prices dropped 0.1% at the monthly level and down 0.8% at an annual rate.

 

Energy prices, which is a major driver of the index, said Destatis, has fallen about 3.8% from September 2013. Without energy prices, producer prices would be 0.1% higher in September than a year ago at a monthly rate.

 

Prices at the factory have been affected, but not interpreted directly to the price paid by consumers.

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News and Review of European Economic Zone (UK)

 

British Immigration Policy Review European Want

Monday, October 20th, 2014

 

British Prime Minister David Cameron will set immigration policy as the focus of discussion at a meeting of the European Union at the weekend. Cameron is trying to drum up support for his party and UKIP parties are central to stem rising in popularity ahead of elections next year. Cameron's plans to reduce net immigration from EU member states from 243,000 to 100,000 in 2015. Cameron also promised to tighten the government's social assistance policies towards migrants and prohibit migrants from countries that will join the European Union.

 

When asked in reaction to the report, European Commission President Jose Manuel Barroso said the EU's immigration policy can not be changed because of these policies play an important role for the European internal market. "My advice for the UK is not to question the policy," Barroso said when interviewed by the BBC. Barroso's comments can certainly dim the efforts of Cameron who is trying to maintain the UK as a member of the European Union

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News and Review of European Economic Zone (Italy)

 

Italy Industrial Orders Rise in August

Tuesday, October 21, 2014

 

For the first time in the last four months of the Italian industrial orders recorded an increase, both from domestic and foreign orders.

 

Istat reported industrial orders rose 1.5% in August from July, which fell 1.5%, the calculations have been adjusted. Meanwhile, from the same period a year earlier orders fell 3.2% using the unadjusted calculation. Orders from foreign rose 2.5% in August, while domestic orders increased by 0.7%.

 

Italy is the country with the second largest manufacturing sector in Europe, the progressive increase in orders could be a reference would be an increase in manufacturing activity. However, Istat said in August is the month of "special" because of easy changes occur.

 

Industrial sector reported sales rose 4.4% from July, with an increase of 3.0% from the foreign market. While the sales of the previous year showed a decline of 2.3%, dragged down sales in the domestic market decline of 4.4%

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News and Review of European Economic Zone (UK)

 

Fixed Rate BOE Votes 7-2 to Keep Interest Rate at 0.5% level

Wednesday, October 22, 2014

 

Monetary Policy Committee of the Bank of England produces voted 7-2 at its meeting in October to keep hold interest rates at record lows, according to minutes which results in the release on Wednesday. Minutes show seven members prefer to leave interest rates at a record low 0.5%, interest rates at the level where it has endured since March 2009, however, the minutes also recorded a number of members who do not agree as Martin Weale and Ian McCafferty were voiced to the BOE rate hike be 0.75% of the current level of 0.5%, after they opt for it for the first time at a meeting in August. All members voted to retain the asset purchase program unchanged at 375 billion pounds ($ 602 billion). The pound slipped after the minutes, traded at $ 1.6015, at 15:44 pm, down from $ 1.6067 at the moment of the report.

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News and Review of European Economic Zone

 

The prospect of additional stimulus Shadowing the Euro

Wednesday, October 22, 2014

 

Reuters reported on Tuesday, the European Central Bank prepares to purchase corporate bonds in the secondary market. ECB reportedly will probably make a decision to buy corporate bonds fastest in December, and the purchase will begin early next year. The Reuters report was released a day after the ECB said it started buying covered bonds that are part of the program of monetary stimulus to boost economic growth in the euro zone.

 

Meanwhile, the United States today will release inflation data for September is expected to stagnate 0% of the month sebelummnya deflation of 0.2%. While core inflation which excludes food and energy products in the calculation expected to rise 0.2% from the previous month stagnant 0%. Inflation also become a factor for the Fed to raise interest rates, the dollar rallied in previous weeks is feared to dampen the rate of inflation increase. While investors began to rule out the potential increase in interest rates sooner than supposed by the Federal Reserve due to a slowing global economy.

 

However the difference between the monetary policy of the Fed and the ECB are still profitable dollars. ,, Inversely proportional to the ECB bond buying program the Fed is expected to end at the monetary policy meeting next week.

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News and Review of European Economic Zone (Spain)

 

Spanish Unemployment Rate Down in Third Quarter

Thursday, October 23, 2014

 

The growth of the Spanish economy into one of the fastest in the euro zone, making Spain the unemployment rate in the third quarter of this year dropped to its lowest level since late 2011.

 

Statistical Bureau of Spain, INE, reported the unemployment rate dropped to 23.7% in the three months to September, down from 24.5%. INE also reported the number of jobs rose 1.59% in the third kuartakl from the previous year. For job creation, the adjusted calculation, also showed an increase in third kurtal, becoming the fourth consecutive quarterly rise.

 

Bank of Spain estimates that the Spanish economy is likely to grow 0.5% in the third quarter from the previous quarter. As for annual economic growth in the quarter was estimated at 1.6%.

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News and Review of European Economic Zone (France)

 

French Manufacturing and Services Index Back Slump in October

Thursday, October 23, 2014

 

Index French manufacturing and services sectors for the month of October shed bigger than analysts expected as the country with the second largest economy in the euro zone is still struggling after a stagnant economy in the first half of this year.

 

Composite index of both industries fell to 48, it was the eight-month low, from the level of 48.4 in September, Markit Economics reported by today. A reading below 50 indicates contraction. The report also shows the companies reducing prices to the lowest level in five years in a bid to revive their business.

 

"The French economy still persist in setback mode in October, as weak demand that has made the activities to be slower," said Jack Kennedy, senior economist at Markit. "Companies today are scrambling to attract the new business" by cutting prices, "it underlines the increasing pressures faced by businesses today," said Jack Kennedy.

 

The manufacturing index fell to 47.3 from 48.8 and the services index fell to 48.1 from 48.4, the index result was below the median estimate of economists in a separate survey done by Bloomberg.

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News and Review of European Economic Zone

 

Index Euro Zone Manufacturing And Services Rises in October

Thursday, October 23, 2014

 

The euro area economy may have been one step ahead of the other contraction.

 

PMI index for manufacturing industry unexpectedly rose to 50.7 in October from 50.3, Markit Economics said today. Economists surveyed by Bloomberg News predicted to decline to 49.9. A reading below 50 indicates contraction. The index for the service industry to survive at the level of 52.4.

 

These figures indicate that the euro area economy "so far managed to avoid a decline back into recession this year," said Chris Williamson, chief economist at Markit in London. At the same time, "looks pretty sluggish growth with increasing number of companies are forced to layoff employees and reduce sales prices in an effort to cut costs and increase sales by giving discounts," he added.

 

Economic bloc of 18 countries failed to grow in the second quarter, and ECB President Mario Draghi has warned the deflation spiral of falling prices, the household sector to postpone their shopping. Frankfurt-based institution is start buying bonds on October 20, and is planning to buy assets of background securities before the end of the year in a bid to boost growth and prices in the Euro area.

 

Inflation in the euro zone by 0.3% in September, far from the target of the ECB is only in the range of 2%. Today's report shows companies are reducing prices to the lowest level since February 2010 to increase demand.

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News and Review of European Economic Zone (Germany)

 

German Consumer Confidence Rebounds

Friday, October 24th, 2014

 

German consumer confidence is expected to rebound in November, giving a signal of European citizens are now less affected by the conflict in various regions will have an impact on economic growth.

 

Research group GfK reported German consumer confidence rose to 8.5 in November from October were revised up to 8.4. Initial estimate for October of 8.3. Economists had expected the consumer confidence index of 8.1.

"In Okober, German consumer proved to be less affected by the ongoing geopolitical issues and economic pelambatabn they experienced the previous month" GfK said.

 

GfK also said that expectations for the economy tends to be stable in October after declining by only 0.1% to 4.3, after sharp falls in two consecutive months. In August, the subindex posted the steepest decline since calculations began in 1980. Expectations for the economy plunged 35.5 points to 10.4, followed by a moderate decline in September.

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News and Review of European Economic Zone (UK)

 

'Booming' Little Britain's economy subside in Q3

Friday, October 24th, 2014

 

'Boom' economy had a slight slowdown in the 3rd quarter, as the easing of the expansion of the manufacturing sector and the growth of service industries. Report of the Office for National Statistics on Friday showed UK GDP grew 0.7% in the July-September quarter after expanding 0.9% in the previous quarter, in line with economists' predictions. While at an annual pace, the economy reportedly grew 3%.

 

Details of the report showed growth in the services sector, which contributes most to the economy, with the largest recorded slowing down to 0.7% from 1.1% in the 2nd quarter. Meanwhile, construction output growth of 0.8% in the 3rd quarter, up slightly from 0.7% in the previous quarter, as the booming UK property market continues to provide support for housing developers.

 

However, a small decrease in the last quarter is unlikely to deter the British be developed economies that experienced the fastest growth this year, according to the International Monetary Fund

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News and Review of European Economic Zone (Germany)

 

German Business Sentiment Back Goes Bad

Monday, October 27th, 2014

 

The level of business confidence in Germany fell for the sixth time as the threat of recession has come to haunt the country is the largest economy in Europe. Index by the Ifo institute's business climate fell to 103.2 in October from 104.7 in September. Economists had forecast a decline to 104.5. The German economy, which has helped the euro zone to emerge from its longest recession last year, contracting in the second quarter, and the Bundesbank predicts weak growth if growth in the second half. The level of factory orders, industrial production and exports all fell the most since 2009 in August, and the level of investor confidence fell for the 10th month in October.

 

"Recent data from the industrial sector is very worrisome," said Joerg Kraemer, chief economist at Commerzbank AG in Frankfurt. "The third quarter may be worse than expected, the economy can only achieve a maximum possible stagnation." Economists estimate the quarterly growth rate of 0.3% for the third quarter. Dijadwalan statistics office will release its initial estimate of GDP on 14 November. Export-oriented German economy depressed by EU and US sanctions against Russia and instability in the Middle East. The slowing Chinese economy, Germany's third-largest trading partner, and weak demand from eurozone countries to increase the risk.

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News and Review of European Economic Zone

 

Banking Stress Test Self relieves the Euro-zone

Monday, October 27th, 2014

 

The results of stress tests of 25 banks showed the ECB 130 leading banks in the euro zone have failed in assessing the quality of the balance sheet and the ability to face the economic turmoil. However, there is no one-none of Europe's largest banks failed the stress test that. No banking German, French, and Spanish are required to increase their capital. This result is quite a relief as ECB provide a more accurate assessment on the health of banks in the euro-zone.

 

Based on the stress test, banks that failed were required to increase their capital allocation. Banks will be given 2 weeks to submit plans to the ECB's capital raising and has a deadline of up to 9 months to cover the capital shortfall. Banks that fail to realize it would face intervention from the ECB as the euro-zone banking regulator.

 

Of the 25 banks that failed, 12 of whom had their capital shortfalls so that now only the remaining 13 banks. Italian banks dominate the bank Monte dei Paschi failed where dei Sienna and Banco Comercial now have to mess around to look for the respective capital shortfall of 2.1 billion euros and 1.14 billion euros.

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News and Review of European Economic Zone

 

Praise ECB Durability and Asset Quality European banks

Monday, October 27th, 2014

 

The results of stress tests on European banks to satisfy many stakeholders, including market participants and financial authorities in Europe. Most financial companies and banks are able to get through a crisis scenario created by the European Central Bank (ECB) at once dispelled fears of investors about the prospects of the banking market blue continent.

 

Head of the Supervisory Board of the ECB, Daniele Nouy, praised the hard work of European banks to meet the standards of durability and quality of assets set by the authorities. "Stress-test process takes place transparently. Investors do not need to worry about the capacity of the banks as the primary financial backer in the economic system," said Nouy told BFM Business radio from France. According Nouy, the results of the new test is an early stage should be maintained by each bank.

 

As previously reported, the ECB bank stress test results indicate that only 25 of the 130 leading banks in the euro zone failed to meet quality standards balance sheets and the ability to deal with economic turmoil. None of the banks with a high reputation from Europe who failed the test and no banks of Germany, France and Spain were required to increase their capital.

 

Banks that fail the test should increase the allocation of capital. They are required to submit a capital raising plan in the next 2 weeks and has a deadline of 9 months to completely cover the capital shortfall. Banks that fail to realize the mandate of the ECB intervention would face, as the euro-zone banking regulator.

 

Then from the 25 banks that failed, 12 of which have been covered undercapitalized so that now only the remaining 13 banks. Italian banks dominate the composition of the names of the banks that failed the test

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News and Review of European Economic Zone

 

ECB Nowotny: Monetary Policy Not Panacea

Monday, October 27th, 2014

 

Accommodative monetary policy can not cure all of the economy in Europe and should be complemented by other measures to trigger the level of demand, according to the members of the policy council of the European Central Bank, Ewald Nowotny on Austrian magazine Trend. "Moenter policy can create a broad framework but should be used by the actors in the economy. Monetary policy is not a panacea," according to a commentary in the magazine that was released Monday. He returned supportive measures ECB to buy covered bonds and asset-backed securities (ABS) as a way to boost the level of lending by banks.

 

"Reputation ABS markets in the euro zone is worse than the actual performance," he said, reminding that the default rate on the ABS Europe since coming out of the financial crisis only reached an average of about 0.6% - 1.5%. "That's why it makes people misinterpret ABS as junk," he said, saying that the ABS is peneting bridge between bank loans and loans on the capital market as at the financial level goes up. He reiterated the statement that quality is more important than quantity for the ECB in the program. Nowotny said the ECB's goal is to strengthen the economic recovery so that inflation will move closer to the target in the near 2. "ECB discretion may increase the supply of funding, but in order to be effective it needs sufficient demand from investors and consumers. Overall, this takes the initiative to strengthen the level of demand in the economy through financial institutions or structural policies. "

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News and Review of European Economic Zone (Sweden)

 

Sweden Cuts Interest Rates To Zero Percent Level

Tuesday, October 28th, 2014

 

Sweden's central bank cut its benchmark interest rate to as low as zero percent on Tuesday, in a move to boost inflation expectations continuously depressed below the central bank.

 

Riksbank, Sweden's central bank cut its interest rate from the previous level 0:25% at zero percent, below analysts' forecast of 0.05%. The impact of its currency is the Swedish krona plummeted to 4-year low against the dollar and fell to a three-month low vs. the Euro.

 

Swedish inflation rate as measured by indicators CPIF, dirilsi only up 0.3% in September, down 1.4% below the central bank's forecast lately.

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News and Review of European Economic Zone

 

Europe Approves Budget French & Italian government

Wednesday, October 29th, 2014

 

The European Commission gave approval for the French and Italian government budgets that have been revised and uttered no euro-zone members that violate rules of fiscal stability. Paris and Rome has revised the 2015 budget which had received criticism and the risk rejected by the European Commission. Jyrki Katainen Commissioner welcomes the commitment of euro zone members on fiscal stability but pointed out the details of the analysis will be continued next month.

 

Italy has cut its budget deficit target for 2015 from 2.9% to 2.6% of GDP and ignore the 3.3 billion euros of tax incentives. France also reduce the budget deficit of 0.5% of GDP budget deficit target despite a 4.3% of GDP is still high compared to the EU standard 3% of GDP. Paris sure can get additional savings of 1.5 billion euros as lower interest expenses and a contribution to the EU budget.

 

French and Italian government budget was getting criticism from Germany, the Netherlands and Austria are worried about the commitment of the two countries on fiscal stability. However, no major country in the euro zone seemingly in Paris and Rome clashed with are gaining strong political pressure from the country to spur economic activity. Paris and Rome even want to keep the European Union examines the policies that can spur economic activity as the euro zone is now threatened with recession again.

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News and Review of European Economic Zone (UK)

 

The UK Growth Rate Will Slows Ahead of End of Year

Wednesday, October 29th, 2014

 

The rate of growth of the private sector in the UK slowed in the span of three months to October, according to a report on Wednesday, which warned that overall economic growth will be hampered in the fourth quarter of 2014. The latest growth indicator of the Confederation of British Industry, which predicts the rate growth and covers about 75% of the private sector economy, indicating that the growth rate is still thin on the long-term average in the third quarter. The growth rate is expected to increase rapidly in the next 3 months, but the CBI statement shows "Recent data in accordance with our forecast that GDP growth rate will slow in the rest of 2014. thinner"

 

Data released last week showed UK economic growth slowed slightly in the third quarter as expansion in the manufacturing sector eased and service industry growth rate slowed. UK GDP expanded by 0.7% in the third quarter from the previous quarter, according to the Office for National Statistics on Friday. For the annual rate, the economy grew by 3%, with the data according to analysts' expectations.

CBI projecting growth to be around 0.6% - 0.7% in the rest of the year. "Outlook UK economy as a whole remains healthy," said the CBI, despite the risks associated showed a prolonged reduction in economic activity in the euro zone, and the risk of geopolitical tensions in Ukraine, Russia and the Middle East.

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News and Review of European Economic Zone (France)

 

French Consumer Confidence Stagnant in October

Wednesday, October 29th, 2014

 

French consumer confidence stagnated at low levels in October, statistics agency Insee reported Wednesday.

 

The consumer confidence index in the 2nd largest economic bloc euro was last at level 85, unchanged from the rate in September. These levels also remained well below the long term average at the level of 100, according to Insee.

 

Consumers' assessment of their financial strength and ability to make savings recorded only a slight change compared to September. While the French household optimism about the standard of living is declining, despite concerns over rising unemployment reduced

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News and Review of European Economic Zone (Germany)

 

German Unemployment Rate Down Sharply

Thursday, October 30th, 2014

 

The unemployment rate in Germany was reduced more than expected in October, fell most sharply in the six months as the signal level of the firm belief in the power of the largest economies in Europe today. The number of unemployed fell as much as 22,000 becomes 2,887 million in October, according to the Federal Labor Agency in Nuremberg. Economists expected an increase of 4,000 people. The unemployment rate remained at 6.7%, its lowest level in more than two decades. The German economy can only grow slowly, if growing, following a contraction in the second quarter, according to the Bundesbank. Yet recent surveys show a decline in business sentiment, the level of demand for labor increases, with the opening of employment is at its highest level in nearly three years.

 

"Economic conditions are still good and relatively healthy labor market, despite the poor data in recent weeks," said Carsten Klude, chief investment strategist at MM Warburg & Co. in Hamburg. "The company reported earnings this season shows a possible third quarter not too bad. "

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News and Review of European Economic Zone (UK)

 

Rate of Home Price Increase Slows in UK

Thursday, October 30th, 2014

 

The rate of growth of house prices in the UK again slowed for the second month in a row in the annual rate in October, adding to evidence that the sharp recovery in the UK housing market began to slow down, according to the survey results on Thursday. Nationwide said house prices rise in the annual rate of 9.0% in October, down from 9.4% in September, but was above analysts' estimates of 8.5%. For monthly rates, house prices rose by 0.5% in October, slightly higher than forecast and followed a slight decline of 0.1% in September.

 

"Nationwide data for October are in line with our view that house prices will continue to rise but at a rate that is more restrained," said Howard Archer, chief UK and European economist at IHS Global Insight. "But the increase in peluanga that the Bank of England will not raise interest rates before mid-2015 will support housing market activity in the dean, and possibly also the price of the home."

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News and Review of European Economic Zone (Germany)

 

Figures German Retail Sales Exceed Estimates Drops Sharply

Friday, October 31, 2014

 

Negative news re-accepted by business and the European economy some time ago. Retail sales data (retail sales) of Germany suffered its biggest monthly decline since May 2007 the period of September 2014 the percentage was 3.2%.

 

Results of retail sales data added to concerns about the lack of citizen consumption amid a slowdown in the European economy. September retail sales fell 3.2% (adjusted for inflation and kalende count) compared notes last August. The rate of decline was even more severe than the estimate of economists surveyed by Dow Jones Newswires, who forecast the data is only down 0.8%. Worse, the growth rate of retail sales for August 2014 were also revised down from an estimated 2.5% to 1.5%. Retail sales data itself is known as an economic indicator that its movement is quite volatile so herap undergo significant revision.

 

For annual calculation, German retail sales are still up 2.3%. Throughout the first 9 months of 2014, retail sales figure rose 1.3% in real terms compared to the previous year. In annual retail sales, sales of food products, beverages and tobacco rose 4.2%. While the increase in the number of sales of non-food goods only by 1.0%. The sale of textile products, clothing, footwear and leather goods fell by 7.3%, according to the agency statistike Germany, Destatis.

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News and Review of European Economic Zone

 

Euro Zone Inflation Rate Up Thin in October

Friday, October 31, 2014

 

The inflation rate in the euro zone rose slightly in October, according to initial estimates by the European Union's statistics office on Friday, giving some hope that the deflation can be avoided. Eurostat said consumer inflation rate in the euro zone rose as much as 0.4% in October, according market expectations, a day after German inflation rate slowed to 0.7%, its lowest level since the May. European statistikuni Office said the highest rate of increase was printed by the service sector, sebeasr 1.2%, followed by a 0.5% increase in the price of food, alcohol, and tobacco. Outside food and energy, prices rose as much as 0.8% in October, steady from September.

 

The ECB, which has a mandate to maintain the rate of inflation to be around, but below the level of 2%, has been committed to expansionary policy, including asset purchase plan, and said it was considering further policy if needed. Economic sentiment data better than expected on Thursday, which is also signaled by a rise in inflation expectations of consumers and producers, may give the central bank refrained separately incentive not to take further policy actions before the end of the year. Eurostat data on Friday also showed the unemployment rate in the euro zone remained steady at 11.5% in September.