Eurozone inflation continued to drop in September and is currently at its lowest reading since early 2010, leaving room for the European Central Bank (ECB) to embark on further quantitative easing.
Specifically, headline inflation for the region dropped to 1.1% year-on-year during the month, from the prior month´s reading of 1.3%.
The consensus estimate had been for an advance of 1.2%.
The ECB's target rate is "below, but close to, 2% inflation". In this context, Capital Economics commented that the data showed that "the ECB has plenty of scope to loosen monetary policy further. At the very least, further action to boost liquidity in the banking sector looks increasingly likely."
The ECB will take its next monetary policy decision on Wednesday.
Source: LiveCharts
Specifically, headline inflation for the region dropped to 1.1% year-on-year during the month, from the prior month´s reading of 1.3%.
The consensus estimate had been for an advance of 1.2%.
The ECB's target rate is "below, but close to, 2% inflation". In this context, Capital Economics commented that the data showed that "the ECB has plenty of scope to loosen monetary policy further. At the very least, further action to boost liquidity in the banking sector looks increasingly likely."
The ECB will take its next monetary policy decision on Wednesday.
Source: LiveCharts
