Record-low inflation may require ECB to boost PEPP purchases
HICP index expected to decline year on year by 0.2% in August; core inflation at record-low 0.4%
Sharply lower inflation in August may force the European Central Bank (ECB) to boost asset purchases in a bid to stave off deflationary risks.
The European Union’s official statistical agency, Eurostat, reported today (September 1) that it expects inflation in the eurozone to have steeply declined in August. It forecasts the harmonised index of consumer prices (HICP) declined year on year last month to -0.2%, down from 0.4% in July. Core inflation, excluding energy, food, alcohol and tobacco
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