Eurozone inflation has slid further to 0.3 per cent in August, according to the latest flash estimate from Eurostat.
Data released to data by European Union statistical office Eurostat reveals that annualised inflation dropped back to 0.3 per cent during the month of August from 0.4 per cent in July.
This latest flash estimate is likely to put increased pressure on the European Central Bank to introduce quantitative easing in the eurozone in an effort to stop the currency bloc from slipping into a deflationary cycle.
ECB president Mario Draghi further fuelled speculation that an asset purchase programme may be brought in when speaking at Jackson Hole last week, arguing that monetary policy “can and should play a central role” in boosting demand in the eurozone and reaffirming that the ECB was “ready to adjust [its] policy stance further”.
Services are expected to have made the biggest contribution to inflation during August, according to Eurostat, despite falling to 1.2 per cent from 1.3 per cent in July.
Energy proved the biggest negative contributor having dropped back to -2.0 per cent compared to -1.0 per cent for the previous month.