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Inflation hits five-year low

euromillions2Eurozone inflation dropped to its lowest level since November 2009 this August.

Prices grew by only 0.3% in the year to August, down 0.1 percentage point from July, according to a preliminary estimate from statistics agency Eurostat.

The flash estimate did not provide data on individual countries, but Portugal, Greece and Spain are already in deflation.

Fears are rising that other eurozone countries will also plummet, as analysts warn that price growth in the eurozone is worryingly low and believe that the fall is another sign of weakening economy.

Many eyes are on the European Central Bank to see if it will set quantitative easing into effect.

The ECB’s inflation guideline is 2%, a far cry from the current 0.3%.

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