Euro-Area Inflation Revised Down After ECB Pledged to Halt QE
(Bloomberg) -- Four days after the European Central Bank decided to end asset purchases, data showed a larger-than-anticipated slowdown in euro-area inflation.
Consumer price growth slipped to 1.9 percent in November, the least since May, from 2.2 percent the previous month. That’s below the initial estimate of 2 percent. A measure stripping out volatile components such as food and energy that’s closely watched by policy makers was unrevised at 1 percent.
Since the ECB’s Governing Council devised plans in the summer to halt quantitative easing at 2.6 trillion euros ($3 trillion) by the end of the year, the economy has showed signs of weakening momentum. Output contracted in two of the region’s three largest economies in the third quarter, and confidence in a strong rebound have diminished amid trade tensions, the threat of a no-deal Brexit and Italy’s fiscal troubles.
ECB President Mario Draghi presented forecasts last week that saw the 2019 inflation forecast cut to 1.6 percent. The central bank aims to keep the rate below, but close to, 2 percent in the medium term.
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