Eurozone inflation has fallen to its lowest level since the height of the financial crisis, sliding further into what the European Central Bank (ECB) has described as a “danger zone”.
Prices rose in the single currency area by 0.4% in July, from 0.5% in June.
The ECB considers that an inflation rate of below 1% poses a risk of deflation.
Separate figures show that unemployment in the region fell slightly to 11.5% in June compared to 11.6% in May.
The new inflation figures from the European Union’s statistical office, Eurostat, show that the rate remains persistently below the ECB’s target rate of 2%. Prices have risen at an annualised rate of less than 1% for the last ten months.
Central Bank governor, Mario Draghi, has previously warned that he would deem inflation below 1% to be in a “danger zone”, which could lead to prices tipping into a deflationary spiral.
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