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Euro zone core inflation rises, unemployment drops

By dailymail / Published on Monday, 31 Jul 2017 09:31 AM / No Comments

Consumer prices went also up for other industrial goods by 0.5 percent from a 0.4 percent inflation rate in June. Inflation was stable at 1.4 percent for food, alcohol and tobacco products, while it decreased in services to 1.5 percent from 1.6 percent.

In a separate release, Eurostat said unemployment in the euro zone fell to 9.1 percent in June from 9.2 percent in May, reaching its lowest level since February 2009 and beating market expectations of a 9.2 percent rate.

Eurostat also revised down the May unemployment figure to 9.2 percent from the previously estimated 9.3 percent.

The unemployment rate went down in Italy and Spain, the two euro zone countries with the highest rates, excluding Greece for which fresh data were not available.

In Italy unemployment dropped to 11.1 percent in June from 11.3 percent in May, meaning that nearly 60,000 were added to the Italian workforce. In Spain, the rate fell to 17.1 percent from 17.3 percent.

In Germany, the largest economy of the bloc, unemployment sunk to 3.8 percent in June from 3.9 percent the previous month, raising expectations of bigger wage rises that could strengthen growth in the euro zone a whole.

Wage growth is also closely watched by the ECB to decide its monetary policy.

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