Inflation in 16 European countries reached zero in late May 2009, European Bureau for Statistics informed on 29 May. The statistics is calculated on a yearly basis.
The inflation level, measured by Eurostat, is said to be the lowest since 1996, when the calculations actually started. In April 2009 the inflation ratio constituted 0,6%. The May inflation appeared to be 0,2 percent lower than economists had expected. The May inflation level is at the same time much lower than the 2% - price stability level recommended by European Central Bank.
Eurostat is expected to perform a detailed report in June. It should as well include future forecast.
The data distributed is expected to confirm hopes that the European Central Bank is about to purchase some banks financial assets in order the inflation not to fall below zero. At the meanwhile the European Central Bank is not expected to decrease the current interest rate of 1%.
