Eurozone inflation approaches target

Eurozone inflations falls to two per cent, nearing the European Central Bank's target of just below that figure. Eurozone inflation was last at this level at the end of 2010.

(Source: Eurostat)

IHS Global Insight's Howard Archer says:

A recent overall firming of oil prices and elevated food prices due to poor harvests could prevent further falls in Eurozone consumer price inflation in the very near term. However, the firmer euro will help to limit inflation, while underlying price pressures should continue to be constrained by still muted economic activity, excess capacity and ongoing wage moderation amid high and rising unemployment.