BRUSSELS, Aug 29 (AFP) : Eurozone inflation fell to 0.3 per cent in August, official data showed on Friday, meaning that deflation is at the door and raising pressure on the European Central Bank to open up the cash floodgates.
The latest fall takes the rate down from 0.4 per cent in July and 1.3 per cent a year ago, and far below the ECB's target of just under 2.0 per cent.
The latest twist downwards, against a background of worryingly sluggish eurozone growth, was driven by falls in the prices of food and energy, the European Union's statistical arm Eurostat, which published the figure, said.
Eurostat also reported that the eurozone unemployment rate in July was steady at 11.5 per cent from the level in June.
This means that the rate is running at the lowest level since September 2012, and marks a decline from 11.9 per cent in July last year.
Eurozone inflation 0.3pc falls, as deflation knocks
FE Team | Published: August 30, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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