Inflation in the eurozone has fallen to a three-year low and unemployment hit a new record, cementing expectations of an interest rate cut by the European Central Bank later this week.
Inflation tumbled to 1.2% in April, the lowest level since February 2010 and the biggest monthly drop in more than four years, the EU’s statistics office Eurostat said on Tuesday, reflecting an economy mired in recession.
That put the annual rate of increase in the cost of living well below the ECB’s target of close to, but below 2%, and raises pressure on the central bank to act.
via Financial Post
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