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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
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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.