World Economy

Eurozone Inflation Stable

Eurozone Inflation StableEurozone Inflation Stable

Official figures show inflation in the 19-nation eurozone was stable in August at an annual rate of 0.2%, ABC News reported. The European Union’s statistics agency, Eurostat, says Monday that a large drop in energy prices made up for increases in the costs of food, tobacco, services and industrial goods. The inflation figures remains far below the European Central Bank’s aim for a 2% annual rate. The central bank is pumping €60 billion ($68 billion) a month of new money into the financial system of the eurozone to boost inflation. A prolonged period of low inflation or, worse, an outright drop in consumer prices, can hurt an economy by encouraging consumers to delay purchases.