The inflation rate in the 19-member euro area has remained lower than expected, despite the European Central Bank’s policy of quantity easing – designed to infuse cash into the economies to drive inflation toward the 2.0% target.
On September 18, the European statistics office reported that consumer prices in the Eurozone rose by 1.5% in August month on month. This marked a slightly stronger pace than that recorded in July.
However, as reported by Deutsche Welle (DW), Germany’s international broadcaster, the rate stayed well below the European Central Bank’s 2.0% target despite the lender’s continued lax monetary policy.
Some eurozone members have already hit that target, including Belgium and Spain, while the Baltic countries have overshot it. Lithuania for instance logged an inflation rate of 4.6% in August.
The ECB itself said on September 18 that it was expecting a slump in consumer prices in the first quarter of 2018 when inflation could fall as low as 0.9%.