The euro zone's annual rate of inflation slowed, slipping below the European Central Bank's July target to its lowest level since October 2009. According to the Wall Street Journal, the Eurostat has reported that consumer prices were only 0.4 percent higher than seen in July 2013, as the inflation slowed from 0.5 percent in June. Now, for 10 consecutive months the inflation rate has been below 1.0 percent.
After starting a series of measures meant to accelerate growth and return the inflation rate back to its goal below 2 percent, this is a major setback for the ECB.
ECB Vice President Vitor Constancio said, "We have to wait and see what will be the use of these measures. We won't introduce new measures until we assess [whether] these measures will be as effective as we expected," according to the Wall Street Journal.
Figures released by the European Union's statistics agency also showed that the jobless rate hit its lowest level since September 2012, falling to 11.5 percent in June from 11.6 percent in May.
The euro traded at 1.3386 per dollar in Frankfurt on Wednesday.
The ECB expects economic growth to increase to 1.8 percent by 2016, reaching 1 percent this year, reports Bloomberg. It predicts inflation at 0.7 percent for 2014, climbing to 1.1 percent in 2015 and then 1.4 percent the following year.
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