FRANKFURT, Germany (AP) — Annual inflation in the 19 countries that use the euro remained stuck at 1.2 per cent in June, well below their central bank’s goal despite years of stimulus policies.
The official figure released yesterday by the European Union (EU) statistics agency matched the May reading and came in short of the European Central Bank’s (ECB) target of just under two per cent considered best for the economy.
The figure for core inflation, which excludes volatile fuel and food prices, rose more than some expected, however, climbing to 1.1 per cent from 0.8 per cent last month. Core inflation is considered to give a truer picture of trends in consumer prices.
ECB President Mario Draghi said last week that unless inflation improves, more stimulus such as interest rate cuts or bond purchases will be needed.