Economics
Euro-Area Inflation Turns Negative in Worrying Sign for ECB
- Prices fell 0.2% in August from a year ago vs. est 0.2% gain
- PMIs suggest firms bracing for near-term weakening of demand
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Consumer prices in the 19-nation euro area are falling for the first time in four years, highlighting that a recent rebound in economic activity hasn’t managed to offset the pandemic’s profound impact on demand.
The inflation rate came in at -0.2%, missing economists’ median estimate for a reading of +0.2%. Core inflation hit a record low, in part dragged lower by discounting during summer sales.