The inflation rate in Germany is giving cause for concern after falling steadily, reaching 0.8% in July.
There is growing speculation that the eurozone recovery is evaporating in the light of weak price growth figures from across the region.
The IMF has warned that “lowflation” could harm the whole region, especially “financially stressed countries”.
It noted that the difference between low inflation and actual deflation is just a psychological one.
Lack of demand from consumers has brought about a reduction in the cost of merchandise and some services as traders reduce prices.
A flash estimate from Eurostat pinpointed July’s inflation at just 0.4% for July.
