BIS central bankers’ speeches  1  According to Eurostat’s flash estimate, euro area annual HICP inflation was 0.5% in June 2014, unchanged from May. Among the main components, services price inflation increased from 1.1% in May to 1.3% in June, while food price inflation fell from 0.1% to –0.2%.
The housing market should gradually recover as the cutback in production and lower prices help reduce the inventory overhang. And, as it does, the drag on growth from the declines in residential construction will abate, providing a boost to overall economic activity.