Eurozone Inflation Stays Low

BRUSSELS (AP) — The European Union’s statistics office says the inflation rate for the 18-nation eurozone in June remained flat at a low 0.5 per cent.

Eurostat said Monday its initial June estimate shows the core inflation rate, which excludes volatile food and fuel costs, has edged up to 0.8 per cent from 0.7 per cent in May.

The European Central Bank seeks an inflation rate of about 2 per cent and has embarked on a raft of aggressive measures to spur inflation and boost Europe’s economy.

Some economists are warning the persistently low inflation rate could lead to deflation, in which prices fall persistently and choke growth. The ECB says it’s worried about the low inflation rate but doesn’t expect the currency zone to slide into deflation.

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