Eurozone inflation dips, manufacturing takes turn for worse

AP FILE PHOTO

LONDON — New figures show inflation across the 19-country eurozone has fallen further away from the official target, a development that is likely to cause concern at the European Central Bank.

Statistics agency Eurostat said Monday that consumer prices rose by only 1.4 percent in the year to March, down from 1.5 percent the previous month. The ECB aims for an inflation rate of just below 2 percent.

Stripping out volatile items like energy and food, the so-called annual core rate was 0.8 percent, down from 1 percent.

The inflation news follows the decision last month by the ECB to delay the earliest date for rate increases and to offer banks cheap loans.

Earlier Monday, a closely watched survey showed the eurozone’s manufacturing sector shrinking at its fastest rate in six years.

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