+34
Inflation in the euro zone rose faster than expected to 3.3 per cent in August, driven by higher energy prices, which suggests the European Central Bank will proceed with a second interest rate hike this year next week. However, underlying price pressures remain subdued and there is no immediate need for further rate rises after October.
Christine Lagarde, president of the European Central Bank (ECB), will announce the latest interest rates decision next week. Photograph: Alex Kraus/Bloomberg Price growth across the bloc accelerated to 3.3 per cent last month, up from 2.9 per cent in July, driven almost entirely by higher oil and gas prices, data from Eurostat indicated.
The latest figures are consistent with the ECB's own expectations and suggest that a widely anticipated hike in the deposit rate to 2.5 per cent next week will be a relatively easy decision. It would be the bank's second move this year after a hike in June, Markets have already priced in the move with the focus now firmly on what happens down the line amid a complicated geopolitical backdrop with the US and Iran still on a war footing.
Why am I being charged PRSI when I am on the State pension? Policymakers will take heart from the fact that underlying price pressures remained modest, suggesting the second-round effects of higher energy prices are not as widespread as many feared.
The Eurostat figures indicated core inflation - which exclude volatile food and fuel prices - eased to 2.4 per cent last month from 2.5 per cent as growth in services prices, the single biggest component of the consumer price basket, slowed to 3 per cent from 3.3 per cent. Financial markets see two more rate hikes in the next year on the premise that higher energy prices will eventually start seeping into broader price setting, especially since the war in Iran is showing no signs of winding down, keeping inflation high.
Natural gas prices are also rising while the broader economy has also proven resilient to the economic stress of wars, tariffs, and higher rates, so the ECB may need to do more to stem price pressures, some economists argue. In addition, global peers, including the US Federal Reserve, may also be forced into rate hikes, boosting market bets for a global rate-hike cycle.
Still, even if the ECB is forced into further hikes, there appears to be little urgency in follow-up moves, so policymakers may skip the October meeting and focus on the next round of economic projections in December. A Wicklow woman in Marbella: 'I would make friends in the summer and they would then go home.
But I found my tribe'A tale of two Shannons: 'Housing estate after housing estate and the lights go out at 9'Ikea cuts prices in Ireland amid slumping consumer confidenc
European Central Bank Inflation Interest Rates Oil Prices Gas Prices Core Inflation
Ireland Latest News, Ireland Headlines
Similar News: You can also read news stories similar to this one that we have collected from other news sources.
European Union's Future: Macron's Departure Sparks Leadership VoidAs the political season resumes after the summer break, French President Emmanuel Macron finds himself at a critical juncture, with a significant portion of the electorate opposing him and Marine Le Pen posing a serious threat to his presidency. In the context of a changing global landscape where the United States is retreating from its traditional security role, Macron has been a prominent advocate for European strategic autonomy. His departure from office could leave a leadership vacuum, as his potential successors lack his visionary approach and strong stance on European integration.
Read more »
Energy Price Surges and Geopolitical Tension Drive Inflationary Pressures in Ireland and EurozoneRecent HICP data reveals a significant spike in energy costs driven by the US-Iran conflict, prompting potential interest rate hikes by the ECB to combat rising inflation.
Read more »
Irish Boxing Squad of Fourteen Heads to Sofia for Inaugural European Elite ChampionshipsA fourteen‑member Irish boxing team, featuring Olympic double‑gold medallist Kellie Harrington and a mix of seasoned Olympians and rising talents, will compete in the first European Boxing Elite Championships in Sofia, Bulgaria, from 17 to 25 September.
Read more »
Irish boxer Jack Marley eyes European Elite Boxing Championships amid national sporting surgeHeavyweight Jack Marley sees the upcoming European Elite Boxing Championships as a chance to add to Ireland's recent wave of success across athletics, rowing, swimming and boxing, including world titles for Aaron McKenna and medals at the European Athletics and Aquatics Championships and the World Rowing Championships. He praises Katie Taylor's upcoming farewell bout and hopes to compete while the country's athletes enjoy back‑to‑back triumphs.
Read more »