German bonds set to get boost as eurozone inflation seen lagging

Edinburgh

INFLATION data this week is set to provide another demonstration of the challenge facing the European Central Bank (ECB), while giving a boost to investors backing German bonds.

Price growth in the eurozone held at 0.2 per cent in July, economists surveyed by Bloomberg said before an Aug 14 report. Such a result would fall far short of the ECB's target of close to 2 per cent inflation, and would help convince traders that its quantitative-easing (QE) plan will last through to the scheduled end date of September 2016.