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Will Eurozone Inflation Reach Its Target?

Although Europe has experienced strong economic expansion in recent years, inflation remains below the central bank’s target of 2 percent. Joanna Sawicka, emerging Europe research analyst, explains that lower inflation has been due to poor wage growth, fewer loans being taken out and declining productivity of workers. However, newly released May data reports eurozone inflation at 1.9 percent, up from 1.2 percent in April, just shy of the 2 percent target.

For Joanna’s full explanation, watch the video below!

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All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.

Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.

The Consumer Price Index (CPI) is one of the most widely recognized price measures for tracking the price of a market basket of goods and services purchased by individuals. The weights of components are based on consumer spending patterns.