INFLATION in the Eurozone’s four largest economies failed to register any significant pick-up in October.
Annual price rises in Germany, France, Spain and Italy came in at 0.7 per cent, 0.5 per cent, minus 0.2 per cent and 0.1 per cent respectively – all considerably below the European Central Bank’s two per cent target for the Eurozone as a whole.
Meanwhile, Eurozone GDP growth expectations have been cut, according to an ECB survey of 61 forecasters.
Only three months ago forecasters had predicted GDP in the Eurozone would grow by one per cent and 1.5 per cent in 2014 and 2015 respectively.
The GDP growth forecasts have been cut to between 0.8 per cent and 1.2 per cent.
Today sees the release of GDP growth figures for the three months to September. There are fears that the single currency bloc may be in another recession.
“The data increases pressure for additional monetary policy easing, in the form of full-blown quantitative easing,” said BNP Paribas’ Luigi Speranza, referring to the reluctance of ECB boss Mario Draghi to take stronger action.