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Annual inflation in the eurozone remained unchanged at 0.4 percent in August, after declining its lowest level since October 2009, according to a report released by Eurostat on Wednesday.
The lull in inflation rates indicates that moderate economic recovery seen in the eurozone may by challenged in the forthcoming period.
"Euro area annual inflation was 0.4 percent in August 2014, unchanged compared to July. In August 2013 the rate was 1.3 percent. Monthly inflation was 0.1 percent in August 2014," the report stated.
The existence of inflation levels close to zero will spur worries of a deflationary period, where consumers delay spending in hopes of cheaper prices, halting the flow of money within the economy.
In its last monetary policy meeting the European Central Bank unexpectedly cut its benchmark interest rate to 0.05 percent in a move to boost economic activity and ease deflationary worries.
However, the OECD said recently that the ECB's interest rate moves may not be sufficient to obtain a result and stressed the necessity of large-scale asset purchase programs, a practice named quantitative easing.
www.aa.com.tr/en - Ankara
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