REPORT
By Abdulselam Durdak
Frankfurt letter, week beginning Sept. 5

- Eurozone inflation remains weak in August

Euro area annual inflation is expected to be 0.2 percent in August 2016, and stable compared with July 2016, according to a flash estimate from Eurostat, the statistical office of the European Union.

The European Central Bank (ECB) has introduced a number of measures to ensure price stability in the Eurozone, but the inflation rate still remains out of the bank's target of just below 2 percent.

Meanwhile, in the labor market, the euro area seasonally-adjusted unemployment rate was 10.1 percent in July 2016, considered stable compared to June 2016 but down from 10.8 percent in July 2015.

The European Union’s (EU) unemployment rate was 8.6 percent in July 2016, resilient compared to June 2016 and down from 9.4 percent in July 2015.

- News from Germany

German unemployment continues at a record low 6.1 percent. The numbers out of work in seasonally adjusted terms in Europe's biggest economy fell by 7,000 to 2.68 million, the Federal Labor Agency (BA) said on Wednesday.

And on the employment side, according to provisional results of employment accounts, the number in employment increased by 36,000, or 0.1 percent, in July 2016 month-on-month.

The increase in June was higher compared to the relevant average of the past five years (+11,000 people). After seasonal adjustment, the number employed increased by 41,000, or 0.1 percent, in July 2016 compared with the previous month.

- The week ahead

This week, the focus will be on President of the European Central Bank (ECB), Mario Draghi’s press conference following the ECB's monetary policy meeting in Frankfurt. The ECB is not expected to reveal a new package of measures.

On the data side, the Eurozone’s second quarter GDP and main aggregates will top the markets’ agenda.

05 Sep,2016

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