Market News
April 30, 2013 @ 9:39 am

Euro zone jobless rate hits record high

Economic data from the euro zone on Tuesday made a stronger case for the European Central Bank to lower the benchmark interest rate at its next policy meeting on Thursday.

There is growing speculation that the central bank will cut the rate by at least 25 basis points to 0.5 percent in an effort to stimulate the sluggish euro zone economy which has slipped into its second recession since 2009.

Euro zone CPI data this morning showed that inflation has fallen to a three year low, dropping more than expected to 1.2 percent in April, according to Eurostat . This is the lowest level since February 2010 and the biggest monthly drop in more than four years. This is well below the ECB’s 2 percent target inflation rate giving more pressure for the ECB to act.

Meanwhile the unemployment rate for the euro zone ticked up to 12.1 percent, which is a new record high since the euro region’s inception in 1999. This comes out to some 19.2 million people now out of work in the bloc , highlighting the impact of the euro zone’s debt crisis.

Spain has the highest youth unemployment figures at a shocking 56 percent.

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