A man looks at a construction site from a small aperture from behind a sheet of metal fencing, in northern Greek city of Thessaloniki on Monday, June 2, 2014. Greece's trade federation said Monday that some 31 percent of all shops in the city center remain unoccupied as a result of the country's acute financial crisis that has seen unemployment hit record-high levels amid a six-year recession. The federation said the number of closed shops was slightly down compared to its last survey about six months ago. (AP Photo/Nikolas Giakoumidis)
June 03, 2014 - 2:02 AM
FRANKFURT - Inflation in the eurozone sagged to an annual rate of 0.5 per cent in May, adding to pressure on the European Central Bank to take action to support growth this week.
The figure released Tuesday from the European Union's statistics agency fell from 0.7 per cent in April. Market analysts had expected 0.6 per cent.
Inflation has been low for several months, increasing concerns that the 18 countries that use the euro could fall into outright deflation, a downward price spiral that chokes off growth and can be difficult to get out of.
The ECB has said it's not happy with low inflation, which is well below its goal of just under 2 per cent. Analysts expect it to cut interest rates and possibly take further measures Thursday to spur credit to businesses.
News from © The Associated Press, 2014