High unemployment rate in Europe

Euro retreats influenced by the possibility of European rate cut

European Statistics Office announced that the data of the annual rate of consumer prices in the euro zone rose unexpectedly in September to 3%, after rising inflation in Germany unexpectedly which may deter the European Central Bank cut interest ratesnext week.

This rate of 3% in the 17 countries using the euro, is the first estimate of the European Union statistics office and compares with 2.5% in August, and economists had expected inflation to reach 2.5% in September.

The expectations are growing among investors that the European Central will cutinterest rates to support the European economy is surrounded by problems at a timewhen pressing the debt crisis of the European business confidence and increase the risk of renewed recession.

He also explained that the data of unemployment in the euro area for the month ofAugust, and that percentage has not changed from what it was in July at 10%, butdecreased slightly from 10.2% in the same month last year.