Arab Today, arab today spain italy report weak inflation amid pressure on ecb
Last Updated : GMT 06:34:36
Arab Today, arab today
Arab Today, arab today

Spain, Italy report weak inflation amid pressure on ECB

Arab Today, arab today

Arab Today, arab today Spain, Italy report weak inflation amid pressure on ECB

A senior checks a notebook with her expenses after buying food in Moncalvillo de la Sierra, Spain
Madrid - AFP

Spain and Italy reported feeble increases in consumer prices in May on Friday, as the eurozone struggled with the spectre of an economically damaging deflationary spiral.
Spanish consumer prices rose at an annual rate of just 0.2 percent in May, held down by lower food and soft drink prices, said an initial estimate by the National Statistics Institute calculated in line with European Union norms.
Meanwhile inflation slowed by 0.1 point to 0.4 percent in May in Italy owing to lower food and transportation prices using EU norms, Istat said.
Inflation has been slowing this year in the 18 countries that share the euro, raising concerns about the possibility of deflation emerging.
It picked up marginally to 0.7 percent in April, but still well below the European Central Bank's target inflation rate of about two percent.
In a period of deflation, when consumer prices fall for a broad range of items over a sustained period, people and businesses tend to postpone purchases while hoping for further price declines in the future.
Deflation can thus push an economy into a vicious spiral of falling growth and rising unemployment, and it is notoriously difficult to reverse.
Consumer prices in Spain appear to be skirting in the danger zone, after declining by 0.2 percent in March and edging up by just 0.3 percent in April.
However low inflation, combined with slow growth, can also be a problem as it can discourage investment and make paying back debt difficult.
ECB president Mario Draghi said this week that the eurozone bank was alert to the risk of persistently low inflation.
Draghi told analysts in Sintra, Portugal that the eurozone's central bank expected low inflation eventually to return to close to 2.0 percent.
But the ECB had to be prepared for other outcomes, Draghi said, and markets are expecting the central bank will next week lower already record low interest rates and perhaps take other steps to boost lending.
The ECB targets inflation at just under 2.0 percent because of experience and theory which shows that this is what is needed to oil sustainable growth.
- Spanish trade balance setback -
If inflation rises above 2.0 percent, businesses and people anticipate future price rises. This can push up prices and wages, and causes a so-called second round of inflationary pressure.
The Bank of Spain also reported that the balance of payments showed a nearly doubled deficit in the first quarter of 8.2 billion euros ($11.2 billion) from 4.3 billion euros for the same period last year, blaming a sharp increase in the trade deficit.
The balance of payments of all cross-border flows is a closely watched measure of a country's ability to pay its way in the world, and a big component is the trade balance.
Spain, in common with other countries hard hit by the eurozone debt crisis, is counting on increased efficiency to boost exports and help drive growth.
The country, the third destination in the world for tourists, welcomed 10.1 million tourists in the quarter, an increase of 7.2 percent over a year. Last year it achieved a record of more than 60 million visitors.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today spain italy report weak inflation amid pressure on ecb Arab Today, arab today spain italy report weak inflation amid pressure on ecb

 



Arab Today, arab today
Arab Today, arab today Jordan airline suggests flyers 'talk'

GMT 11:59 2017 Friday ,24 March

Jordan airline suggests flyers 'talk'
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Dozens dead in US-led Syria strikes

GMT 08:35 2017 Thursday ,23 March

Dozens dead in US-led Syria strikes
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemen children dream of school

GMT 07:25 2017 Friday ,24 March

Yemen children dream of school
Arab Today, arab today MP submits a petition to dismiss university head

GMT 06:21 2017 Friday ,24 March

MP submits a petition to dismiss university head
Arab Today, arab today Salvage of South Korea's Sewol ferry

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Renault Trezor wins design award

GMT 11:56 2017 Tuesday ,21 March

Renault Trezor wins design award
Arab Today, arab today Actress Mervat Amin reveals her role in new series
Arab Today, arab today 2017 already marked

GMT 15:25 2017 Tuesday ,21 March

2017 already marked

GMT 06:04 2017 Thursday ,23 March

Haifa Wahby bets on her new drama show

GMT 22:00 2017 Thursday ,23 March

Number of unwedded girls amounts to 2.5m

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 10:34 2017 Tuesday ,21 March

Mexico threatens to ditch US corn imports

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 20:03 2017 Saturday ,25 March

Health expert warns from dust sensitivity

GMT 07:36 2017 Wednesday ,22 March

US, Britain ban laptops on flights

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday