BREAKING NEWS

BREAKING NEWS

Key gauge of euro zone inflation expectations falls further away from ECB target

Key gauge of euro zone inflation expectations falls further away from ECB target
FILE PHOTO: The logo of the European Central Bank (ECB) is pictured outside its headquarters in Frankfurt, Germany, April 26, 2018. REUTERS/Kai Pfaffenbach/File Photo -
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Kai Pfaffenbach(Reuters)
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LONDON (Reuters) - A key gauge of the market's long-term expectations for inflation in the euro zone fell on Friday to its lowest level in more than two years, extending its downward push as weak data exacerbates concerns about economic growth and inflation.

The five-year, five-year breakeven forward, a key market gauge tracked closely by the European Central Bank, fell to as low as 1.4177 percent. The ECB targets inflation at close to 2 percent.

The latest move down follows poor U.S. retail sales numbers on Thursday and data confirming that euro zone economic growth was weak at the end of last year.

(Reporting by Dhara Ranasinghe; editing by Sujata Rao)

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