Euro area’s inflation rate falls to lowest level in four years

The euro area’s inflation rate fell to the lowest level in four years, adding to reasons for the European Central Bank to expand monetary stimulus, Report informs, citing Bloomberg.

With prices growing next to nothing and the economy deep in recession, economists surveyed by Bloomberg predict the ECB will step up emergency asset purchases next week to rekindle growth. Most respondents expect a top-up of 500 billion euros ($550 billion) that would take purchases under all plans this year to 1.6 trillion euros.

Data on Friday showed the annual inflation rate at 0.1%. While food prices continued to grow strongly amid lockdown bottlenecks, energy costs slumped 12%, the most in more than a decade.