Euro: Inflation and Tax Innovations

The year-over-year inflation in the Eurozone increased from 0,2% all the way up to 0,4% in August 2016. This is confirmed by the latest report released by Eurostat. Experts say that the key reasons for this inflation growth are higher consumer prices in the restaurant business, as well as higher prices on tobacco, alcohol, and foodstuffs.

Still, the rate of inflation in the Eurozone remains well below the inflation target set by the European Central Bank, which is current equal to 2%. The latest figures are reported to have matched the preliminary forecast and the analyst forecast. On top of that, these are the highest figures seen since October 2014. Also, the experts anticipate even higher inflation in late 2016 – early 2017.

In the meantime, the Hungarian government is planning to reduce the tax burden for the citizens by cutting deductions form their paychecks within the next 2-3 years. The authorities are sure that they can afford this. By the way, for those of you who don’t know, Hungarians have to give away 49% of their salaries, which is one of the highest levels in Europe. Actually, this is the second-highest level after France, where they pay 57%.

At the same time, Portugal is planning to increase the tax on residential property costlier than 600 000 EUR by 0,3% in 2017. This way, the government is planning to allocated 170 million EUR and spend them on higher pensions and salaries in the public sector of the national economy.

The parliament is ready to back this bill and vote for it to turn it into a law. Still, experts say that this decision may have a negative impact on the local housing market since it may scare away foreign investors and buyers, who are mostly of French and British origin. They are also planning to increase the tax on the fixed property rented by tourists. This may increase the cost of vacation in Portugal .  The voting is scheduled for late November.

FOREX

In the meantime, the SRP Department of Masterforex-V Academy reports that if you analyze the market of EURUSD with the help for the SRP tool, you will see that the price is still developing wave C of level Daily. Within the scope of a bearish ABC pattern. The next target is 1,0663.