Euro-area inflation rate goes negative for first time since 2016

Consumer prices in the 19-nation euro area are falling for the first time in four years, highlighting that a recent rebound in economic activity hasn’t managed to offset the pandemic’s profound impact on demand.

The inflation rate came in at -0.2%, missing economists’ median estimate for a reading of +0.2%. Core inflation hit a record low.

Part of the decline reflects discounting during summer sales, but the latest numbers are likely to sound the alarm for European Central Bank policy makers who have tried to soften the economic shock unleashed by the coronavirus.In a warning sign for what