June inflation remains at 1.8% in the EU

June inflation remains at 1.8% in the EU

The annual inflation in the EU is announced to be 1.8% by end June, the same as in May 2003. A year earlier the rate was 1.7%. As per the data by Eurostat breakdown of the annual inflation rates of the member countries are as follows: Germany 0.09%, UK 1.1%, Belgium 1.5%, Austria 1%, Finland 1.2%, Italy 2.9%, Denmark, Sweden, France and Luxembourg 2%, the Netherlands 2.5%, Spain 2.8%, Portugal 3.4%, Greece 3.6%, Ireland 3.6%. According to Eurostat, the inflation in Switzerland during the same period is recorded as 0.05%. Meanwhile the European Central Bank acts determined not to reduce the interest rates. According to the officials, in a situation where the interest rates are at their historical low with enough liquidity on hand a further reduction of interest rate would not have much to contribute to the economy. The interest reductions by the US Federal Reserve led Euro to appreciate against the US Dollar and caused the EU exporters pushed for similar reductions in the region.