Eurozone inflation hits five-year low
The low inflation rate indicates the Eurozone recovery may face challenges ahead
ANKARA
Annual inflation in the Eurozone fell to 0.3 percent in September, its lowest level since October 2009, according to the European Union Statistical Authority.
The figure in Tuesday’s report indicates the moderate economic recovery seen in the zone’s 18 countries may come under pressure in the near future.
“Euro area annual inflation was 0.3 percent in September 2014, down from 0.4 percent,” Eurostat reported.
The zone’s highest annual rate of 1.1 percent affected services while food prices rose to 0.2 percent and alcohol and tobacco goods fell to -0.3 percent.
With inflation hovering close to zero, anticipation of a period of deflation has led consumers to delay spending in the hope of cheaper prices in the near future, reducing the flow of money in the economy.
Within the zone, unemployment remained unchanged at 11.5 percent for August while unemployment in the European Union fell to 10.1 percent.
According to Eurostat, the Eurozone’s seasonally adjusted unemployment rate remained stable compared to July.
Unemployment in the zone fell by 137,000 in August to an 18.3 million total, almost 834,000 less than the same time last year.
Across the 28-country EU bloc unemployment fell to 10.1 percent, the lowest value since February 2012.
The lowest unemployment rate was in Austria with 4.7 percent while highest rates were seen in Greece, on 27 percent, and Spain with 24.4 percent.
The largest decrease was registered in Hungary, with a fall from 10.2 percent to 7.8 percent between July last year and July 2014. Hungary was followed by Portugal, from 16.1 percent to 14 percent, and Spain, from 26.1 percent to 24.4 percent.
Youth unemployment, a particular problem for EU states such as Spain, stood at 4.9 million in the union in August, 3.3 million in the Eurozone. Compared to August last year, youth unemployment dropped 602,000 in the EU and 210,000 in the Eurozone.
