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| Version 2 | Version 3 |
|---|---|
| Eurozone returns to deflation in September | Eurozone returns to deflation in September |
| (35 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. | 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. | 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 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. | 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. |
| Losing impetus | |
| Despite some growth and inflation in the first half of the year there are signs the recovery is losing its impetus. | |
| Some economists fear the slowdown in the Chinese economy could seriously damage the European and US economy. | |
| On Wednesday the Bank of Spain said that it expected economic growth there to slow from 1% to 0.8% in the third quarter, and that the recovery in the jobs market had tailed off over the summer. | |
| The prospect of deflation and a slowing economy increases pressure on the ECB to increase QE 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. | 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." | "However, it may not be until the December meeting... that the governing council is prepared to make such a judgement." |
| After the news the euro weakened against the dollar to $1.1209 from $1.1252 on Tuesday, a fall of 0.35%. | After the news the euro weakened against the dollar to $1.1209 from $1.1252 on Tuesday, a fall of 0.35%. |