Inflation in Europe at lower level than nine months. Europe is in recession officially
Inflation in Europe, which is now officially in recession, is its lowest level for October of nine months since it appears from Eurostat data.
The increase of consumer prices was 3.2 percent for October on an annual basis (after 3.6 percent growth in September and 3.8 percent in August). This is the lowest level of January 2008
Registered rates of 4 percent for June and July represented a record of the creation of the euro in 1999
Slowing inflation should “maintain consumer spending after the euro fell in recession for the first time in its history”, says Ben May, analyst at Capital Economics.
Continuing delay in the growth of consumer prices is explained by lower oil prices, while the appreciation of food has less effect.
The increase in prices of energy products only amounted to 9.6 percent in October on an annual basis to 13.5 percent in September. Food, alcohol and tobacco products are more expensive to 4.4 percent in the last month with a growth of 5.2 percent for the previous.
At present the euro is exchanged for 1.2700 dollars, from the morning is traded in relatively narrow range between 1.2720 and 1.2660.
Europe in recession
Europe is in recession, finally became clear today. Eurostat data show that gross domestic product of countries of the euro decreased for the second consecutive quarter. According to preliminary results decreased for the third quarter amounted to 0.2 percent after the previous period statistics reported decline in same size.
Annual euro zone economy grew by 0.7 percent. This is a significant delay to the measured three months at the earlier 1.4 percent.
Eurostat data show that the European Union as a whole also addresses the recession. Preliminary estimates show a decline in GDP of the EU-27 by 0.2 percent for the third quarter after economic growth was sluggish in the second quarter. For the last year economic growth in the EU amounted to 0.8 percent.
Recession is the first for Europe for the past 15 years and is caused by the credit crisis that began Mortgage sector of the U.S. and grew into a global collapse of the exchanges.
The results are not surprising, since yesterday it became clear that Germany is in its most serious recession for the past 12 years. Today disappointing news came from other leading economies of the euro - Italy and Spain.
The gross domestic product of Italy has svil with 0.5 percent for the previous quarter and annual decreased the economy of 0.9 percent. Yet the Spanish economy experienced negative growth of 0.2 percent. However, the Iberian country is in technical recession, as in the second quarter experienced growth. For the last year economic growth of Spain was 3.7 percent.
Relatively positive news came from France, where it became clear that for now the economy avoids recession. After the fall of the past quarter and now account statistics minimal growth of 0.14 percent, which surprised analysts.
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