| Updated:
Deflation fears for Eurozone
EUROZONE inflation is forecast to have slipped into negative territory for the first time in the trading bloc’s history in June, dragged down by lower energy and food prices, data are expected to show today.
A Reuters poll of 37 economists showed inflation at -0.2 per cent year-on-year this month, after prices remained flat in May, a long way from the European Central Bank’s target of close to but below 2 per cent.
Forecasts for June ranged from -0.4 per cent to remaining flat.
However, there is little fear of long-term deflation.