German and Spanish consumer inflation accelerated more than expected in August but remained below the European Central Bank’s target. Laura Frykberg reports.
It's been a while since the ECB had reason to celebrate... New euro zone data though, should be just the lift it needs. Consumer prices in Spain have grown 2 percent year on year.. Germany's too have increased by 1.8. SOUNDBITE (English) IG SENIOR ANALYST, CHRIS BEAUCHAMP, SAYING: "We've had a very strong performance in the euro zone over the course of the last six to seven months really that stupid broad recovery in my opinion that's feeding through to confidence in business." The euro zone as a whole has also been livelier this month. The European Commission's sentiment index rose in August... Thanks to optimism among industry and consumers.. But with the currency continuing to strengthen against the dollar.. It may JUST be the ECB painting the town red. SOUNDBITE (English) IG SENIOR ANALYST, CHRIS BEAUCHAMP, SAYING: "A strong currency is a consequence of improvements in optimism regarding the euro zone but it is doing no favours for exporters. So I think you might start to get a few jitters really beginning to feed through from the business sector over the next few months." The figures though, are still not quite at the ECB's target of just under 2 percent... Next week it's holding a policy meeting. And while this latest data might not be enough yet to raise rates... It is at least a push in the right direction.