Euro-Area July Inflation Slowed on Budget Cuts, Debt Crisis

Euro-region inflation slowed in July as Europe’s worsening debt crisis and a faltering global economy damped the growth outlook.

The inflation rate in the 17-nation euro area fell to 2.5 percent, down from 2.7 percent in June, the European Union’s statistics office in Luxembourg said today. That’s in line with an initial estimate published on July 29 and exceeds the European Central Bank’s 2 percent limit for an eighth month.