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Inflation, Unemployment: A Double Whammy for the EU

In a double whammy for Europe, newly released data indicate that inflation is rising, while the unemployment rate remains above 11%. The eurozone’s annual rate of inflation is expected to be 2.6% in August 2012, according to a preliminary estimate…

By Trey Thoelcke

Published August 31, 2012, 7:57am ET · 1 min read

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In a double whammy for Europe, newly released data indicate that inflation is rising, while the unemployment rate remains above 11%.

The eurozone’s annual rate of inflation is expected to be 2.6% in August 2012, according to a preliminary estimate from
Eurostat, the statistical office of the European Union. That would be up from 2.4% in July. Economists had forecast a rate of 2.5%.

“For the euro area in particular, inflation expectations have remained very well anchored following the non-standard liquidity provision measures undertaken by the ECB,” said a European Central Bank Executive Board member on Thursday. He also indicated that inflation expectations are low because economic activity is forecast to remain lackluster, and the ECB will mop up any excess liquidity in the banking system should it threaten to boost inflation.

In a separate report, Eurostat said that the unemployment rate in the eurozone stood at 11.3% in July. That was unchanged from an upwardly revised reading in June, as well as in line with forecasts.

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Trey Thoelcke

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.
Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community.
Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.
Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, moderating workshop sessions at regional conventions.

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