Eurozone Inflation Confirmed at Minus 0.2% in August

Annual inflation in the euro zone was minus 0.2 percent in August, the European Union (EU)'s statistics bureau Eurostat said on Wednesday, confirming a previous estimate.

It has been the third consecutive month that the eurozone inflation was in the negative territory amid the current economic crisis, but the index is falling more slowly than in July when eurozone inflation registered a record drop of 0.7 percent, a sign that the worst part of the crisis may be ending.

Inflation in the euro zone has fallen sharply in recent months mainly due to retreat of world oil prices and the worsening economic situation.

According to Eurostat, energy prices in the euro zone declined by 10.2 percent in August, compared with the same period of last year.

In the face of consumption slump amid the worst recession since the Great Depression in the 1930s, companies are forced to cut prices for survival, contributing to the fall of inflation.

For the 27-nation EU, inflation was 0.6 percent in August, up from 0.2 percent in July but significantly lower than 4.3 percent a year ago.

Among EU member states, the lowest annual rate was observed in Ireland, which was minus 2.4 percent, while the highest in Hungary, which was 5.0 percent. Inflation in Germany, the largest economy within the EU, was minus 0.1 percent.