This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-29425775
The article has changed 3 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Eurozone inflation slows to five-year low in September | Eurozone inflation slows to five-year low in September |
| (35 minutes later) | |
| Eurozone inflation slipped again in September, with prices rising at their slowest rate in nearly five years. | Eurozone inflation slipped again in September, with prices rising at their slowest rate in nearly five years. |
| Consumer price inflation rose by just 0.3% compared to the same month last year, slowing from August's 0.4% rise, said EU statistics agency Eurostat. | |
| It is the lowest level for eurozone inflation since October 2009, adding to fears of a deflationary spiral. | |
| Inflation has been persistently below the European Central Bank's (ECB) 2% target rate. | |
| Eurostat said falls in the prices of unprocessed food and energy had driven the overall slowdown. | Eurostat said falls in the prices of unprocessed food and energy had driven the overall slowdown. |
| Unprocessed food prices fell 0.9% year-on-year, while energy dropped 2.4%. | Unprocessed food prices fell 0.9% year-on-year, while energy dropped 2.4%. |
| Earlier this month, the European Central Bank cut its benchmark interest rate to 0.05%, and introduced new stimulus measures in an attempt to kick-start the eurozone economy. | Earlier this month, the European Central Bank cut its benchmark interest rate to 0.05%, and introduced new stimulus measures in an attempt to kick-start the eurozone economy. |
| However, the dramatic move fell short of a programme of buying government bonds - a process known as quantitative easing (QE), and one which the US Federal Reserve has undertaken. | However, the dramatic move fell short of a programme of buying government bonds - a process known as quantitative easing (QE), and one which the US Federal Reserve has undertaken. |
| Unemployment steady | |
| Hargreaves Lansdown senior economist Ben Brettell said inflation was now "perilously close to zero", and put pressure on the ECB to do even more. | Hargreaves Lansdown senior economist Ben Brettell said inflation was now "perilously close to zero", and put pressure on the ECB to do even more. |
| "Today's drop in consumer price inflation heaps further pressure on Mario Draghi to engage in QE. I believe he will succumb to this pressure eventually," he added. | "Today's drop in consumer price inflation heaps further pressure on Mario Draghi to engage in QE. I believe he will succumb to this pressure eventually," he added. |
| Mr Draghi is expected to give further details of the ECB's new stimulus measures when its governing council meets on Thursday. | Mr Draghi is expected to give further details of the ECB's new stimulus measures when its governing council meets on Thursday. |
| Separately, Eurostat also reported that unemployment in the eurozone remained steady at 11.5% in August, unchanged from July. | Separately, Eurostat also reported that unemployment in the eurozone remained steady at 11.5% in August, unchanged from July. |
| But, the number of people looking for work in the region's largest economy, Germany, increased by a seasonally-adjusted total of 12,000 in September, data from the national labour office showed. | |
| However, analysts said the rise was not a big cause for concern just yet. | |
| "Although (the data) suggest that the German job market have lost a bit of steam recently, it remains in good health," Natixis economist Johannes Gareis said. | |
| Germany's jobless rate at 6.7% is close to a post-reunification low. |