Italy’s Inflation Rate Rose in August: EWI Fell 0.40%
According to the August 31 release by the ISTAT, the EU’s harmonized inflation rate in Italy rose to an impressive 0.50% in August on a YoY (year-over-year) basis.
The inflation rate for the Eurozone, as gauged by the change in the consumer price index, was in negative territory in December 2014 and 1Q15.
It looks like it will take more than just a positive inflation reading for investors in the United Kingdom to have positive sentiments towards the region’s growth.
July’s inflation report failed to generate positive sentiment among investors in French equity. The EU harmonized inflation rate in France came in at 0.20% in July.
The ECB’s (European Central Bank) monetary stimulus package seems to be working well for most Eurozone economies, especially Italy.
European ADRs (American depository receipts) such as Nokia (NOK), Banco Santander (SAN), and Royal Dutch Shell (RDSA) rose on Friday’s close.
Consumer spending, which is a key driver of the inflation rate, needs to pick up in the Eurozone.
The Eurozone’s Retail PMI (purchasing managers’ index) dipped to 50.4 in June from the 51.4 recorded in May.
Economic confidence weakened in the Eurozone due to the Greece crisis escalating, worries of a Grexit, and a subsequent negative effect on other Eurozone economies.
The EU harmonized inflation rate in Germany fell to 0.1% in June on a YoY basis from May’s 0.7%. It was being pumped by the ECB’s monetary stimulus package.
Spain’s economy is finally out of deflation. The inflation rate in Spain was recorded at 0% in June. Spain recorded a 0.20% rise in the EU harmonized CPI.
On June 26, the German Federal Statistical Office came out with yet another positive reading in retail sales data. In Germany, retail sales rose by 1.7% in April.
According to a June 26 release by the National Institute for Statistics, consumer confidence in Italy rose to 109.5 points in June from May’s 106.
Eurozone consumer confidence is steady in June despite the ongoing debt crisis in Greece.
According to the latest reports, the Eurozone’s inflation rate was 0.3% in May. Gains in the Eurozone inflation rate are being led by services, food, alcohol, and tobacco.
For June 2015, the downward trend in the ZEW Indicator of Economic Sentiment continued for Germany. This made investors wary of their holdings.
The ECB’s monetary stimulus package seems to be working well for Italy and other Eurozone economies. The inflation in Italy recovered to 0.2% in May.
Spain’s inflation rate moved up 0.4% in May. Spain continues to be in deflation. Its inflation rate is at -0.3%—a long way from its rate in January.
Spanish and Italian yields fell more than the American bond, due to expectations that quantitative easing would be introduced in Europe.
European equities fell further on the European Commission’s consumer confidence report for May 2015.