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Euro-Area Inflation Close to Zero Adds to Reason for ECB to Act

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relates to Euro-Area Inflation Close to Zero Adds to Reason for ECB to Act

Source: ECB

Updated on

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.

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 expects a top-up of 500 billion euros ($550 billion) that would take purchases under all plans this year to 1.6 trillion euros.