• By The Financial District

EUROZONE INFLATION FALLS INTO NEGATIVE TERRITORY

Inflation in the eurozone has fallen into negative territory, reaching -0.2 per cent in August, the European Union's statistical office estimated on Tuesday, Deutsche Presse-Agentur (dpa) reported late on September 1, 2020.

In July, the annual inflation rate in the 19 countries that use the euro stood at 0.4 per cent. The deflation was mainly driven by falling energy prices, which plummeted by almost 8 per cent, Eurostat said in its first estimate for August. Annual inflation is measured by comparing the price levels between the current month and the same month last year. 


Meanwhile, the average rate of joblessness in the eurozone rose to 7.9 per cent in July, an increase of 0.2 percentage points from June. Across the whole 27-country EU, the rate of unemployment was 7.2 per cent, the July figures released by Eurostat showed, up from 7.1 per cent the previous month. 


Eurostat estimates that 15.2 million people in the EU, including 12.8 million in the euro area, were out of work in July.