The monster called – Inflation

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Inflation Remains Unchanged at 2.7% in June 2011
According to the Statistical Office of the European Union, the Eurozone annual inflation remained at 2.7% in June from May 2011 figure amid expectations that it is likely to inch upwards to 2.8%. Earlier in April, the European Central Bank (ECB) increased the policy rate by 25 basis points to 1.25% in a bid to keep inflation rate around the 2% bound. Inflation in the Eurozone has always been above the central bank target since December 2010 despite stringent control measures implemented by ECB. Given the recent pull-back in oil price, inflation rate is likely to slow down slightly in July with anticipation that the sovereign debt crises in the zone will subside. However, it is widely believed that the ECB will raise its interest rate in the policy meeting this week on the back of stable Eurozone consumer price inflation in June.

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