Eurozone inflation turns negative again

Inflation in the eurozone turned negative again in September due to falling oil prices, raising pressure on the European Central Bank to take more measures to kick-start growth.

Prices fell by 0.1 percent on an annual basis, the first time inflation has dipped below zero since March.

The ECB, which is pursuing a target of almost two percent, is buying 60 billion euros of assets each month to boost prices but says it may have to increase or extend its quantitative easing scheme.

But long term inflation expectations are at their lowest level since February, with China’s economic slowdown, rock bottom commodities prices and feeble lending growth in the eurozone reinforcing pessimism.

Inflation has run below target for two years now and shows little sign of picking up just yet.