Eurozone Inflation Fall

Eurozone Inflation Fall.

The Eurozone saw inflation drop 0.5% in May, down from 0.7% in April. The drop means that inflation is way off the European Central Bank’s (ECB) target of 2%.

This means that measures will have to be taken to boost growth to stop the risk on deflation.

Eurostat showed that unemployment in Europe fell slightly from 11.8% in March to 11.7% in April. The number of people currently unemployed in Europe fell by 76,000 between March and April.

The ECB’s boss Mario Draghi is expecting to step in with new measures to improve this slump in inflation. He is expected to cut the rate of borrowing for businesses to encourage lending.

It is also predicted that Draghi will cut the interest rate paid to banks for keeping funds to discourage holding funds and encourage lending.