This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.nytimes.com/2014/10/01/business/international/eurozone-inflation-falls-but-unemployment-remains-steady-data-show.html

The article has changed 3 times. There is an RSS feed of changes available.

Version 0 Version 1
Eurozone Inflation Falls, but Unemployment Remains Steady, Data Show Eurozone Inflation Falls, but Unemployment Remains Steady, Data Show
(about 2 hours later)
FRANKFURT — Inflation in the eurozone fell in September while unemployment in August remained at 11.5 percent, according to official data on Tuesday that highlighted the region’s economic weakness. FRANKFURT — Inflation in the eurozone fell in September, while unemployment in August remained at 11.5 percent, reinforcing concerns that the region is at risk of a downward price spiral that would have grave economic consequences.
Inflation declined to 0.3 percent from 0.4 percent, according to a preliminary estimate by Eurostat, the European Union statistics agency. The figure was in line with analyst expectations but still well below the European Central Bank’s target of just under 2 percent.Inflation declined to 0.3 percent from 0.4 percent, according to a preliminary estimate by Eurostat, the European Union statistics agency. The figure was in line with analyst expectations but still well below the European Central Bank’s target of just under 2 percent.
The decline continues to worry economists and policy makers that the eurozone economy is in danger of tipping into deflation, where falling prices cause consumers to delay making purchases and can lead to higher unemployment as companies lose revenue and are forced to lay off workers. The decline in inflation, which is at five-year lows, continues to worry economists and policy makers that the eurozone economy is in danger of tipping into deflation, where falling prices cause consumers to delay making purchases. Deflation can lead to higher unemployment as companies lose revenue and are forced to lay off workers.
Along with high unemployment, which was unchanged from July, the data keep pressure on the central bank to add more stimulus to the eurozone economy. The bank meets Thursday and is expected to give details of plans to buy private-sector assets in order to encourage more bank lending. Along with high unemployment, which was unchanged from July, the data keep pressure on the central bank to increase stimulus to the eurozone economy. The bank meets Thursday and is expected to give details of plans to buy private-sector assets in order to encourage more bank lending.
But analysts do not expect the central bank to yet heed calls for a broader asset-purchase program that would include government bonds. Such action would provoke an outcry in Germany. But analysts do not yet expect the central bank to heed calls for a broader asset-purchase program that would include government bonds. Such action would provoke an outcry in Germany.
Inflation in the 18 countries of the eurozone was held back by falling prices for energy and other commodities, Eurostat said. Inflation could pick up in the coming months as the decline in the value of the euro, which is near a two-year low against the dollar, makes imported fuel and other commodities more expensive. Inflation in the 18 eurozone countries was held back by falling prices for energy and other commodities, Eurostat said. Inflation could pick up in the coming months as the decline in the value of the euro, which is near a two-year low against the dollar, makes imported fuel and other goods more expensive.
As in previous months, Greece and Spain had the highest unemployment rates, with 27 percent and 24.4 percent. Austria, with 4.7 percent unemployment, and Germany, with 4.9 percent, had the lowest rates. The so-called core inflation rate, which excludes prices for food and energy because they tend to fluctuate often, fell to 0.7 percent from 0.9 percent, Eurostat said. The decline in that rate could be especially worrying for the central bank, because it is a more direct reflection of slack demand and the poor health of the eurozone economy.
“The E.C.B. will hardly be pleased at the outlook of very low inflation rate for a longer period of time,” Christoph Weil, an economist at Commerzbank, said in a note to clients.
Although the unemployment rate in the eurozone was unchanged at 11.5 percent, the absolute number of jobless people fell by 137,000 to 18.3 million people. The incremental decline suggests that unemployment will fall in the coming months but at a painfully slow pace.
“We continue to expect only a modest and gradual fall in unemployment rate in the coming quarters,” analysts at Barclays said in a note to clients.
As in previous months, Greece and Spain had the highest unemployment rates, with 27 percent and 24.4 percent. In both countries, though, the rate has been edging slowly downward. The rate for Greece is from June, the most recent reported.
Austria, with 4.7 percent, and Germany, with 4.9 percent, had the lowest unemployment rates in August.
Unemployment among working-age people under 25 remained at 23.3 percent in the eurozone. In Greece and Spain, the jobless rate among youths remained above 50 percent, while in Italy and Croatia, it was over 40 percent.