The Euro continues to rise slightly today. Last week, the European Statistics Agency (Eurostat) said that inflation in the 20 countries of the Eurozone fell to 5.3% in July 2023, down nearly 1 percentage point from May.
Speaking to Reuters news agency, economist Sebastian Dullien from the Institute for Macroeconomic Policy (IMK) based in Düsseldorf said that the data shows the general trend is to reduce inflation. He predicts this number will decrease even more in September 2023.
The European Central Bank (ECB) in late July raised the deposit rate by 0.25 percentage points to a 23-year high of 3.75%. This is also the 9th time in a row that the ECB has raised interest rates within the past year, in order to curb persistently high inflation.
Raising interest rates is seen as a tool to curb inflation. Although inflation in the eurozone has nearly halved from a record high of 10.6% in October 2022, analysts say this is not enough to stop the ECB from taking action.
Speaking to Reuters news agency, economist Sebastian Dullien from the Institute for Macroeconomic Policy (IMK) based in Düsseldorf said that the data shows the general trend is to reduce inflation. He predicts this number will decrease even more in September 2023.
The European Central Bank (ECB) in late July raised the deposit rate by 0.25 percentage points to a 23-year high of 3.75%. This is also the 9th time in a row that the ECB has raised interest rates within the past year, in order to curb persistently high inflation.
Raising interest rates is seen as a tool to curb inflation. Although inflation in the eurozone has nearly halved from a record high of 10.6% in October 2022, analysts say this is not enough to stop the ECB from taking action.
