Eurozone inflation remains low in wake of energy price slump
Wed., Aug. 31, 2016
BRUSSELS – Consumer price inflation in the eurozone remained at a low annual rate of 0.2 percent in August mainly due to a slump in energy costs from last year.
The figure reported Wednesday by statistics agency Eurostat was the same as in July and remains far below the European Central Bank’s target of 2 percent.
The main cause was a 5.7 percent annual drop in energy prices. Not including energy and other volatile items like food, alcohol and tobacco, overall consumer price inflation was 0.8 percent.
The ECB has launched a series of stimulus measures to help the economy and bring inflation to a healthier level. Analysts don’t expect more stimulus at the ECB’s Sept. 8 policy meeting, but don’t rule out more in coming months if inflation doesn’t pick up.
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