Euro zone annual inflation held steady at 0.2 percent in July, far below the European Central Bank (ECB)’s target and disappointing those who hoped monetary stimulus would provide a quick answer to the region’s torpor.
The 0.2 percent figure is the flash estimate from Eurostat, the statistical office of the European Union, and suggests a flatlining of inflation.
Prices rose by 0.2 percent in June and 0.3 percent in May, after a flat reading in April.
May’s pick-up boosted hopes that inflation was returning to the 19-country single currency zone, which dipped into deflation earlier in the year.
However, prices have failed to accelerate since May, with inflation remaining far below the ECB’s target of close to 2 percent.