In Germany has slipped, the inflation rate in July, even in the negative range, mainly as a result of the reduction of the VAT. In other European countries such as France and more expensive food for a greater price provide buoyancy. Accordingly, the inflation rate for the Eurozone of just 0.4 percent higher than in Germany, but far away from the target of the European Central Bank "below but close to 2 percent".
Still, there are good reasons why the Central Bank should not respond. For one, they are already "full throttle". And on the other the Inflation, with energy prices expected to rise soon again.Updated Date: 31 July 2020, 23:19