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Euro zone inflation stays negative but..

Thursday, March 31, 2016 - 01:38

The fall in euro area inflation slowed this month while core figures accelerated. It was mildly positive news for the European Central Bank and, as Sonia Legg reports, other data was equally mixed.

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It was registering 2,000 people a day last September. But six months on it's a different story. The number of migrant arrivals to Germany has slowed to a trickle. That could have an impact on the jobs market, currently holding steady at well below three million - a rate considered almost full employment. (SOUNDBITE) (German) FEDERAL LABOUR OFFICE CHIEF FRANK-JUERGEN WEISE, SAYING: "Seasonally adjusted unemployment didn't change in March. Employment and jobs subject to social security taxes have again risen strongly. The demand for manpower continues to be high." But the status quo is actually considered bad news - the previous five months had seen falls. Combine that with reduced retail spending and Germany's neighbours may need to watch out. SOUNDBITE (English) ADMIRAL SINDEN, MARKET COMMENTATOR, DARREN SINDEN, SAYING: "It is really up to the rest of Europe now to play catch-up and I think that is what the ECB needs to focus on now to try and create growth and demand elsewhere." Retail spending in Spain and France was up - which will please an ECB desperate to boost growth and inflation. But prices continue to vary - core figures which strip out energy and food were up - but overall the trend was lower. SOUNDBITE (English) ADMIRAL SINDEN, MARKET COMMENTATOR, DARREN SINDEN, SAYING: "The ECB will want to see some kind of harmonisation of inflation rates and ideally I would like to see them in positive territory not just in decimal figures but in whole numbers, like one percent or above." Spain - currently under a caretaker government - produced the shock of the day - it missed its public deficit target. 56.6 billion euros is more than 5 percent of Spain's economic output and far more than many had expected.

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Euro zone inflation stays negative but..

Thursday, March 31, 2016 - 01:38