Eurozone inflation drops below zero as prices fall by 0.1%

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http://www.theguardian.com/business/2015/sep/30/eurozone-inflation-drops-below-zero

Negative inflation brought on by cheaper energy prices puts pressure on European Central Bank to boost stimulus programme

Eurozone inflation drops below zero as prices fall by 0.1%
Phillip Inman Economics correspondent
Wednesday 30 September 2015 07.03 EDT

A slump in oil prices pushed eurozone inflation below zero this month, according to figures from Eurostat, the statistical office of the EU.

Prices fell across the currency bloc by 0.1% year-on-year in September, putting pressure on the European Central Bank (ECB) to beef up the €60bn a month stimulus programme begun earlier this year.

Energy prices acted as the biggest drag on prices after a fall by 8.9% year-on-year in September.

Mario Draghi, the ECB president, hinted recently that more stimulus measures could be needed to boost confidence and growth in the eurozone if there was a further drop in prices. He said the unsettled global economy, which is losing momentum as Chinese growth slows, could lead to a more sustained fall in inflation.