Falling energy prices prompt modest fall in eurozone inflation to 0.2 percent in May

Economic Indicators Associated Press

Official figures show that inflation across the 19-country eurozone eased in the year to June to 0.2 percent from 0.3 percent the month before.

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Eurostat, the European Union's statistics agency, says Tuesday the fall in inflation was primarily due to a 5.1 percent drop in energy prices.

Still, this is the third month in a row that the inflation rate has not been negative. Earlier this year, when prices were falling, there were fears the eurozone was set for a potentially debilitating period of deflation — falling prices can weigh on economic activity by making consumers postpone purchases.

In a separate release, Eurostat said the eurozone unemployment rate was unchanged in May at 11.1 percent. The number of people out of work stood at 17.7 million in May.