The prospect of sustained deflation across the euro zone dimmed today as final European Union figures for August confirmed a sharp slowing of price drops.
The cost of living throughout the zone fell by 0.2% in August over 12 months - far less than the record 0.7% fall in July, the official Eurostat EU data agency said.
After figures on Monday showed that the euro zone is expected to have emerged from its worst recession since World War II by the end of this month, these latest results further boost hopes of an economic rebound.
Today's inflation figures marked the third monthly drop in a row for consumer prices, itself the first decline since households began paying for goods in euro notes and coins at the start of 2002.
Despite signs of price stabilisation, the overall rate remains far removed from the rate of 3.8% inflation a year earlier.
Wednesday, 16 September 2009
Euro zone deflation prospects diminish
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