Register | Forgot Your Password? | Close

(AP) - MORE WORRIES: The European Central Bank has a new headache: an unexpected drop in inflation. The recent slide is another sign of how weak the economic recovery is in the 17 countries that use the euro.

DETAILS: An official report this week showed the inflation rate fell to 0.7 percent in September from 1.1 percent the month before. The ECB's stated goal is for inflation of close to but below 2 percent.

THE PROBLEM: The drop in inflation shows people aren't able or willing to risk spending or borrowing. Sellers can't raise prices as much. But the ECB has already used up most of its traditional medicine: lower interest rates. Its benchmark rate is at a slim 0.5 percent.


(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
share this story:
Attention KTAR.com Comment Users: We have recently changed our comments boards.
We would like you to be part of the conversation and The Voice of Arizona by logging in with your Facebook, Twitter, Google+ or Disqus account. Existing KTAR (Arizona Sports) account members will need to create a Disqus account or use one of the aforementioned social media logins. Thank you.
comments powered by Disqus