RTTN:Eurozone Jobless Rate At Fresh High, Inflation Eases Marginally
The euro area unemployment rate reached a fresh high in September, underlining the serious pressure on the labor market emanating from debt crisis and fears of recession.
Meanwhile, inflation in the currency bloc edged down marginally due to slower growth in energy prices in October, strengthening expectations that the central bank may cut its key rate by a quarter point by the year-end.
The unemployment rate climbed to a new record 11.6 percent in September from a revised 11.5 percent in August, figures published by Eurostat showed Wednesday. The jobless rate was forecast to remain at August's originally reported 11.4 percent.
About 18.49 million people were out of work in September, sharply higher by 146,000 from August. Compared with September 2011, unemployment surged 2.174 million.
With a grave danger of another contraction in the fourth quarter amid falling business confidence, the likelihood is that unemployment is heading significantly higher, said IHS Global Insight's Chief UK economist Howard Archer. He sees a very real danger that the Eurozone unemployment rate will rise above 12 percent during 2013.
The unemployment rate for males increased to 11.5 percent in September from 10.1 percent in the prior year. Likewise, the female jobless rate rose to 11.8 percent from 10.6 percent.
The EU27 jobless rate held steady at 10.6 percent. The lowest unemployment rates were recorded in Austria and Luxembourg. Meanwhile, the highest rates were seen in Spain and Greece.
Compared to the previous year, the unemployment rate increased in twenty member states and fell in seven.
Reflecting slower growth in energy prices, Eurozone inflation eased to 2.5 percent in October from 2.6 percent in September, a flash estimate from Eurostat revealed today. The outcome was in line with economists' forecast, but hovers above the central bank target.
The European Central Bank aims to retain inflation rates below, but close to 2 percent over the medium term. ECB President Mario Draghi last week assured that the new bond buying plan will not risk inflation.
Energy prices are estimated to have increased 7.8 percent over the year, down from 9.1 percent in September. Prices of food, alcohol and tobacco increased 3.2 percent and services gained 1.8 percent. Prices of non-energy industrial goods rose 1.1 percent.
