There is a tendency for the European Central Bank to raise its inflation rate this month as shown in the data released on Friday because of the weak oil prices that influence the decline of the consumer prices in the succeeding months. The central bank is pressing to boost prices after it has failed to reach its target over the past four years despite its consequences to attain the two percent target at a long period of time. Meanwhile, the 2 percent target has been lowered to 1.3 percent from the 1.4 percent target in the previous month but it is still above the market expectations of 1.2 percent. The central bank is already implementing the stimulus through massive asset buying and low-interest rates to counter sluggish price growth and encourage borrowing and spending that could lead to inflation. However, the ECB president Mario Draghi tightened its monetary policies implying that improved conditions essentially provides “more accommodation”.
