Euro Zone Inflation Off Three Year Lows As Employment Falls

Although the rate of inflation in the euro zone increased slightly from a three-year low in May, it remained at a level that caused the European Central Bank to take action to stimulate an economy that is losing jobs at an increasing rate. While the central bank anticipates recovery in the euro area to begin later this year, it has identified risks to growth from governments’ austerity programs and tight credit policies by banks. Annual inflation increased to 1.4 percent in May compared to 1.2 percent in April, according to EU statistics agency Eurostat.

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