Brussels: Inflation in the euro zone ticked up in September, data showed yesterday, giving the European Central Bank (ECB) some confidence its stimulus programme is pulling the bloc’s economy away from the deflationary brink.
Consumer prices grew by 0.4 per cent, twice as fast as in August, Eurostat data showed, moving further away from the sustained and economically dangerous fall in prices that can accompany economic crises.
The improvement, while small, will ease pressure on the ECB to expand its 1.74 trillion euros and counting money-printing programme. Some rate setters, such as board member Sabine Lautenschlaeger, have been arguing for delay in a new boost to allow the programme to work first.
September’s improvement was mainly due to a smaller decline in energy prices, which had been pummelled by a drop in the market value of oil.
The ECB said last month it is looking at ways to ensure its current 80 billion euro bond-buying programme, due to run at least until March, can continue amid growing fears it could run out of bonds to buy in countries such as Germany.