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Eurozone returns to deflation in September | Eurozone returns to deflation in September |
(34 minutes later) | |
Deflation returned to the countries that use the euro in September as prices fell at an annual rate of 0.1%. | Deflation returned to the countries that use the euro in September as prices fell at an annual rate of 0.1%. |
It is the first time inflation had turned negative for six months, with an 8.9% fall in the price of energy largely responsible for the decline. | |
Core inflation in the eurozone, which strips out energy and food prices, showed a 0.9% rise, the same as August. | Core inflation in the eurozone, which strips out energy and food prices, showed a 0.9% rise, the same as August. |
The Eurostat statistics agency also said the eurozone's unemployment rate for August was unchanged at 11%. | The Eurostat statistics agency also said the eurozone's unemployment rate for August was unchanged at 11%. |
Mario Draghi, the president of the European Central Bank (ECB), warned earlier this month that inflation could turn negative. | |
The bank expects inflation to be 0.1% in 2015 as a whole, rising to 1.5% in 2016 and 1.7% in 2017. | |
The ECB is spending €60bn (£44bn) on asset purchases, under its programme known as Quantitative Easing (QE), every month for the next year in an attempt to boost prices. | |
However, the latest figures increase pressure on the bank to increase the spending or carry it beyond September next year. | |
Timo del Carpio, European economist at RBC Capital Markets, said: "The [ECB's] governing council will look to cement expectations over the continuation of its asset purchase programmes beyond their nominal end-date of September 2016. | |
"However, it may not be until the December meeting... that the governing council is prepared to make such a judgement." |