Stock Market Today: Dow Rises, Indexes Open Higher After Inflation Data
io Inflation in the eurozone slows down in August, with core inflation rising 5.3% from the prior year. This is a relief to markets which had been worried about inflationary pressure.
Eurozone bonds rose after a closely monitored gauge indicated that inflation pressures underlying the bond market had eased in August.
In August, core inflation (which excludes volatile items like food, energy and alcohol) rose by 5.3% compared to the previous year. This is a slower pace than the 5.5% in July. The headline inflation rate was slightly higher than anticipated, at a steady annual pace of 5,3%. Recent increases in energy costs were the main reason for this.
Data suggest that Europe's stubbornly high inflation rate may be slowing down. This could allow the European Central Bank (ECB) to pause interest rate increases. Recent data also indicate that the eurozone's economy is slowing down, and further interest rate increases could worsen this.