Notably, current developments in emerging market economies have the potential to further affect global growth adversely via trade and confidence effects. According to Eurostat’s flash estimate, euro area annual HICP inflation was 0.2% in August 2015, unchanged from June and July.
Although the labor market has been approaching estimates of maximum employment, inflation has been well below the FOMC’s 2 percent objective. Inflation has been held down by the declines in crude oil prices over the past year, and the stronger dollar is exerting downward pressure on U.S. inflation as well.