Inflation fall ‘masks long-term worries’

INFLATION across the eurozone fell 0.1% to 2.3% last month, EU statistics agency Eurostat said yesterday.

But Irish homeowners were warned that an interest rate hike was likely before the end of the year and that yesterday’s figures only provided limited comfort on the inflation front.

IIB Bank economist Austin Hughes said the European Central Bank (ECB) would be pleased with the fall in inflation but added that the improvement was largely due to heavy discounting by clothing retailers in an effort to shift summer stocks.