Eurozone consumer prices rose by just 0.3 percent year-on-year in August, meeting expectations but marking a fresh five-year low. This is down from 0.4 percent in July, and is significantly below the central bank's target of just below 2 percent.
Boosting expectations that the European Central Bank (ECB) will try to bolster the region's economy. With the ECB meeting next Thursday to decide on the interest rates, the annual inflation figure highlights the deflation pressure further in the Eurozone. Speculation is growing that the ECB could inject money into the system, otherwise known as quantitative easing, hoping that this will stimulate growth and push up prices. Most analysts are not expecting any action as of yet, but could see this action implemented in the coming months.
Data from the Eurozone earlier revealed that the rate of unemployment in the single currency union remained sticky at 11.5 percent, unchanged from June.