Now Reading:

Falling eurozone inflation raises deflation fears


Falling eurozone inflation raises deflation fears


Falling prices – particularly in Germany and France –
pulled eurozone inflation to its lowest for three years in April.

The sharp drop – to 1.2 percent – was confirmed by the EU’s statistics office Eurostat .

Cheaper oil was a big factor. Energy prices fell one percent in April from March in the region, that was the single biggest drop in Eurostat’s index.

With households not spending and companies not investing, the eurozone as a whole is now at risk of deflation.

Greece was in deflationary territory for a second straight month, with prices on average lower than they were in March.

The European Central Bank cut interest rates to a record 0.5 percent low this month, aware that inflation risks falling further below their target of just under 2 percent.

Every story can be told in many ways: see the perspectives from Euronews journalists in our other language teams.

Next Article