Eurozone inflation dropped as expected to a fresh five-year low in August, data showed on Friday, something likely to concern the European Central Bank but not force it into immediate policy intervention.
Consumer prices in the 18 countries using the euro rose by just 0.3 percent year-on-year in August, the smallest increase since October 2009, the European Union’s statistics office Eurostat reported.
Inflation, which dropped unexpectedly to 0.4 percent in July, has been locked in what ECB President Mario Draghi called a ‘danger zone’ of below 1 percent since October last year.
Vanishing inflation poses problems for the ECB as it tries to …read more
Source: Voice of America
