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German Inflation Further Below Zero Bolsters Stimulus Case

  • Consumer prices fell annual 0.4%, most since January 2015
  • Euro-area inflation rate due Friday seen remaining below zero
Updated on

Germany’s inflation rate fell further below zero as the pandemic curtailed demand, adding to the case for more monetary stimulus from the European Central Bank.

Consumer prices declined 0.4% in September, the steepest pace in more than five years. Europe’s largest economy is suffering a double blow from tepid consumption and a sales-tax cut the government introduced earlier this year to bolster the economy.