This measure of European inflation just turned negative for the first time since 2020European policymakers will have breathed a sigh of relief Wednesday as a key measure of inflation revealed the first drop in prices since 2020. That’s the first time producer prices — which feed into prices paid by consumers — have notched a year-on-year decline since December 2020. The numbers signal that consumer price inflation is likely to ease further, falling closer to the European Central Bank’s (ECB) 2% target. According to June survey data published Tuesday, factory output in the euro area recorded its steepest fall since October. The euro area economy slipped into a recession over the winter, and there have been further signs of weakness in the April-June period.

Source: CNN July 06, 2023 03:19 UTC