Eurozone inflation at four-year high of 2% increases pressure on European Central Bank

A goose starts for a flight over the river Main with the buildings of the banking district in background in Frankfurt Germany Tuesday evening Feb. 28 2017

A goose starts for a flight over the river Main with the buildings of the banking district in background in Frankfurt Germany Tuesday evening Feb. 28 2017

Euro zone government bond yields edged up on Thursday after inflation in the bloc hit 2 percent for the first time in four years last month, shooting past the European Central Bank's inflation target. Shilen Shah, Bond Strategist at Investec Wealth & Investment, said immediately following the announcement that, "Despite the European Central Bank hitting its 2% inflation target in February, it is likely to remain cautious on the sustainability CPI maintaining this rate". So-called core inflation, which strips out volatile price components such as food, energy, alcohol and tobacco prices, was measured at 0.9%, unchanged from January.

Energy prices were a massive 9.2 percent higher in February than the year before.

"An updated ECB forecast scheduled to be released next week will give an indication of where the central bank thinks CPI is likely to end up".

The inflation rate for the entire euro zone is expected to rise to 2.0 percent in February from 1.8 percent in January, economists polled by Reuters said.

Northwestern Beats Michigan on Full-Court Pass, Buzzer-Beater
The point is that the streak is over thanks to one of the most incredible passes you'll see on a basketball court. Northwestern's Bryant McIntosh is now up to 525 career assists, three short of Michael Thompson's school record .

In January, Mr Draghi pointed to a new set of criteria arguing that the return to the ECB's inflation goal must be durable, self-sustained and representative of the euro area as whole. According to a survey of 3,000 companies by data firm IHS Markit, eurozone manufacturers raised their prices at the fastest rate in over 5 1/2 years during February as their costs jumped. Stimulus critics, however, have grown louder as the eurozone economy recovers and inflation nears the bank's goal of just under 2 percent. The lender has slashed interest rates and adopted a bond-buying program worth 2.3 trillion euros ($2.42 trillion) to pump money into eurozone economies.

The ECB is scheduled to run its quantitative easing bond-buying scheme until at least December and has pushed interest rates deep into negative territory to try to stimulate weak growth and hitherto stubbornly low inflation.

The ECB was also "very aware that there are appreciable uncertainties ahead, especially political ones", he said, citing elections in the Netherlands, France and Germany, the Brexit talks and the Trump administration.

As recently as May of last year, consumer prices were below their levels of a year earlier, and the 1% level was breached for the first time in more than three years as recently as December. The figure masks the fact that the number of unemployed people fell by another 56,000 during the month.

Recommended News

  • Death threats to filmmaker Mahesh Bhatt's family: UP Police nab one suspect

    Death threats to filmmaker Mahesh Bhatt's family: UP Police nab one suspect

    The caller allegedly threatened to kill his daughter Alia Bhatt and wife Soni Razdan if he was unable to fulfil his demand. Looking at the scenario; the Bhatts approached the Juhu police station to register a complaint against the caller.
    RSS man announces bounty for Kerala CM's head, gets panned

    RSS man announces bounty for Kerala CM's head, gets panned

    While holding the chief minister responsible for the murders, Chandravat said Pinarayi had no right to live in this country. Leader of the Opposition Ramesh Chennithala demanded the arrest of the RSS leader who issued the death threat.
    Russian Federation  probe looms over Coats' bid to become national intelligence director

    Russian Federation probe looms over Coats' bid to become national intelligence director

    Special counsel only applies to a criminal investigation", Gowdy said , adding that the FBI investigates crimes, not Congress. Gingrich said Trump should "take a lesson from the past" by appointing a "very smart, independent person" to investigate.
  • US Federal Reserve plans rate hike this month: Evercore ISI

    US Federal Reserve plans rate hike this month: Evercore ISI

    In addition to a stronger United States dollar, USA bond yields also increased over night due to the hype around a Fed move. Investors will be listening for clues Friday on whether the central bank will raise interest rates again later this month.
    PSL 2nd Playoff 2017

    PSL 2nd Playoff 2017

    The second qualifying final of Pakistan Super League 2017 is going to be played between Islamabad United and Karachi Kings. Both teams 8 points from the 8 matches they had played but Kings were ahead of the United for net run rate.
    4 billion year-old fossils found in Canadian quartz

    4 billion year-old fossils found in Canadian quartz

    The UCL team believes that looking for fossils on the Red Planet is the best chance of finding evidence of alien life . These are some of the oldest known sedimentary rocks on the planet, identified by team member Dominic Papineau.
  • Bioware Releases New Exploration and Discovery Gameplay Trailer for Mass Effect: Andromeda

    Bioware Releases New Exploration and Discovery Gameplay Trailer for Mass Effect: Andromeda

    The video shows off just how open these worlds are, and how you'll use the Nomad all-terrain vehicle to traverse them. Attaining certain AVP thresholds makes upgrading the Nexus possible and wakes up more colonists from cryo-sleep.
    Netflix Announces Dave Chappelle Specials' Premiere Date

    Netflix Announces Dave Chappelle Specials' Premiere Date

    It has been over 10 years since the end of Chappelle's Show and finally, we will be getting new comedy for Dave Chappelle . The other, Dave Chappelle: Deep in the Heart of Texas , was filmed at Austin City Limits Live in April 2015.
    It's Pancake Day - so here's a JS Bach pancake, obviously

    It's Pancake Day - so here's a JS Bach pancake, obviously

    Pancakes were an easy way to use up eggs, butter and milk as well as other lngredients such as chocolate, sugar and cream. The average person will eat 2½ pancakes on Tuesday with most people marking the day in some way, according to a survey.
  • Legend of Zelda: Breath of the Wild - The Complete Dungeons Guide

    Legend of Zelda: Breath of the Wild - The Complete Dungeons Guide

    When fighting monsters in previous Legend of Zelda games, you could normally take your time and wait for an opportunity. This could mean that the producer is implying that the 2D Zelda team is already working on a new Zelda game.
    5th Grader Suggests Tesla Fan-made Commercial Contest

    5th Grader Suggests Tesla Fan-made Commercial Contest

    Right off the bat, Musk's tweet seemed overly optimistic, if not downright absurd. "That sounds like a great idea", he added. Her letter was for a school project, but unlike many letters to celebrities or other figures children admire, it bore fruit.
    Real Madrid vs Las Palmas

    Real Madrid vs Las Palmas

    Real Madrid were in the throes of defeat before their talisman scored two goals in four minutes to end the match at 3-3. Barca enjoyed a far more comfortable night against a Sporting side still mired in the relegation zone.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.