A key measure of eurozone inflation has fallen into negative territory for the first time in two and a half years, in a further sign that the surge in prices that has plagued businesses and households is now in retreat.
The EU’s statistics office, Eurostat, said factory gate prices in the region fell 1.5 per cent in the year to May, the first outright decline since December 2020.
The measure has fallen significantly since the summer, when annual price rises hit a peak of 43.3 per cent in August after energy costs surged in the wake of Russia’s full-scale invasion of Ukraine.
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