BREAKING NEWS

BREAKING NEWS

Eurozone inflation falls to record low sparking deflation fears

Now Reading:

Eurozone inflation falls to record low sparking deflation fears

Text size Aa Aa

Eurozone inflation has fallen to its lowest level in almost four years.

As a result the ECB has cut interest rates to a record low.

Reductions in fuel and telecoms prices pulled costs down with consumer price inflation running at 0.7 percent in the 17 nation eurozone.

The fall has prompted calls for the ECB and Brussels to act to stimulate demand.

Eurozone inflation has fallen steadily since July.

Europe has yet to experience a negative inflation rate, which could impact on demand leading to wage cuts and lower prices.

The figure is not a catch all as there is deflation in Ireland, Cyprus and Greece, while in Germany, Finland and Estonia inflation is running from 1.2 percent to 2.2 percent.

Slovakia, Belgium and France came in at the 0.7 percent figure.

The ECB has an inflation target of just over two percent.