Inflation in the euro area fell to 1% in July, its lowest level since 2016, according to Eurostat data released on Monday (19 August), adding pressure on the European Central Bank to consider relaunching its economic stimulus program in September.
The European Commission kept its growth forecast unchanged at 1.2% on Wednesday (10 July) but revised downwards inflation to 1.3% for this year and the next, strengthening the case for further monetary stimulus as global economic risks worsen.
Eurozone inflation slowed to an annual rate of 1.6% in December, preliminary data from the EU statistics unit Eurostat showed on Friday (4 January), mainly owing to energy items.
The Bank of England looks set to raise interest rates on Thursday (2 August) to their highest level since the financial crisis, defying warnings that it is taking a gamble ahead of Brexit, the terms of which remain unclear.
European Central Bank governors are expected on Thursday (26 October) to begin weaning the eurozone off the high doses of support they prescribed in recent years but they remain far away from reaching their elusive inflation target.
Immigrants have made a large contribution to the working-age population of the eurozone since 2013 and are likely also boosting its labour force, particularly in Italy and Germany, the European Central Bank said.