Euro area inflation turns negative in August

By Aysu Bicer

ANKARA (AA) - The Eurozone consumer prices are projected to fall to -0.2% in August, down from 0.4% in July, turning to negative for the first time in four years, the bloc’s statistic office announced Tuesday.

A flash estimate of Eurostat showed the figure well below market expectations of a 0.2% rise.

Looking at the main components of euro area inflation, food, alcohol and tobacco are expected to have the highest annual rate with 1.7% in August, compared to 2% in July.

These followed by services with 0.7%, non-energy industrial goods -0.1%, and energy with -7.8%.