Eurozone’s second month of deflation raises pressure on ECB - Capital Economics

Latest News

Eurozone’s second month of deflation raises pressure on ECB

02 October, 2020Financial Times

“We had expected the core rate to fall as summer sales extended into September, which is later than usual, pushing down clothing and footwear inflation,” said Jack Allen-Reynolds, economist at Capital Economics.  But Mr Allen-Reynolds said “weak aggregate demand” was likely to keep inflation well below the ECB’s target and meant it was likely to “loosen monetary policy further, perhaps before the end of the year”.

Capital Economics has a team of over 60 internationally renowned and award-winning economists in the UK, Canada, the US, Australia and Singapore.

Please see here for a list of our economists, and contact our Press Office to arrange comments or interviews.