Eurozone Inflation

Eurozone inflation rate steady in August, highlighting the challenges faced by European Central Bank officials over his efforts to revive the growth rate of consumer prices. The consumer price index rose at an annual rate of 0.2%, above estimates of 0.1%. Core inflation persist at 1%, according to European Union statistics office in Luxembourg on Monday. The ECB has cut interest rates and buy bonds to cope with slower inflation rate, which has been under the central bank's target level is close to 2% over 2 years. With China's economic slowdown and falling oil prices, ECB executive board Peter Praet said last week that it is becoming increasingly difficult challenges and policy makers are ready to do more if needed.

According to analysts, it is caused by the energy, and it has two effects for the ECB. On the one hand, the decline in energy prices good for real incomes, as it seemed that the recovery in the euro zone fueled by private consumption, while on the other hand it brings inflation away from the target. To restore the rate of inflation and fulfill its mandate, the ECB is in the middle of the quantitative easing program which is planned to last until September 2016. The ECB Council will hold a policy meeting later on Thursday in Frankfurt, President Mario Draghi will give a press conference after the decision, which he would projections released new growth and inflation. The ECB currently estimates the average inflation rate will reach 0.3% this year, and improved to 1.5% in 2016.