MNI BRIEF: Data Show Subdued Econ, Encouraging Signs-EU Offc'l

MNI (BRUSSELS) - Incoming euro area data are confirming the picture of subdued economic activity but also signs of a pick-up, a senior EU official said Wednesday and ahead of this weekend’s informal discussions of EU finance ministers and central bank chiefs in Budapest.

“Incoming information is by and large confirming the picture that we already had in the Spring that Euro Area economic activity is subdued but there are signs of picking up and we still expect that to happen,” the official said, adding that inflation is currently hovering a little above its 2% price stability target, but added that there is “increasing confidence that price pressures are subsiding.”

“Headline inflation should fall to the price stability target in the course of next year,” the official said. He ssid he expected that the ECB would brief the ministers on its latest policy decisions at the meeting. The ECB is expected to cut key interest rates by 25bp Thursday. (see MNI SOURCES: ECB To Avoid Clear Rate Path, Sept Cut Baked In)