Eurozone inflation dips

The 0.2 percentage points dip from that recorded in July was attributed to an easing in the rate of increase in oil and food prices, alongside the slowdown in economic activity. Richard Snook, economist at the cebr, said: "The latter will have played a significant role in today's figures, with the economy contracting in the second quarter of 2008, and a number of member states likely to be in recession. This is severely limiting the ability of firms to raise prices, even when faced with higher input costs." The greater than expected drop in inflation is likely to exert downward pressur...