Continue rising inflationary risks extinction, which leaves room for the ECB to take more stimulus measures to support and strengthen the economic process without worrying about inflation, which continues to retreat amid weak economic climate in the EUR as the center of the recent aggravation of the sovereign debt crisis.
Decreased producer prices in the euro area during May to a record -0.5% compared with the previous 0.0% and that have been modified to 0.1%, and the actual reading came worse than expected -0.3%, while at annual level has dropped to 2.3% from 2.6% in the previous While expectations were 2.5% ..
Note that the Consumer Price Index (Inflation) has declined by reading recent levels of 2.4% and is the closest to a Bank-2.0% target and that as we reduce the proportion of risk or the risk that beset the bank-by-step expected to cut benchmark interest rate by 25 basis points.
With the reading of the producer price index falling also, this refers to the continuation of low inflation and declining conform to the expectations of the Central European past and that these positive regarding inflation has eliminated the concerns of decision makers in the ECB to move and support the economy creaking note that the task of the bank key is to maintain stability prices, but the presence of these prices in the correct path to the claims of internal and external need to move the bank to support the euro zone economy may increase the likelihood of movement of the Central Bank at its meeting for the month of July and will happen this week doing to reduce the interest rate to its lowest levels since the founding of the Bank.
