Deflation fears for Eurozone

EUROZONE inflation is forecast to have slipped into negative territory for the first time in the trading bloc&rsquo;s history in June, dragged down by lower energy and food prices, data are expected to show today.<br /><br />A Reuters poll of 37 economists showed inflation at -0.2 per cent year-on-year this month, after prices remained flat in May, a long way from the European Central Bank&rsquo;s target of close to but below 2 per cent.<br /><br />Forecasts for June ranged from -0.4 per cent to remaining flat.<br /><br />However, there is little fear of long-term deflation.