Weak inflation puts ECB in tight spot at Malta meeting

Frankfurt

FALLING prices in the eurozone are turning up the heat on the European Central Bank (ECB) to prevent the single currency area from slipping into a dangerous downward spiral of deflation.

But many ECB watchers say they do not expect the guardian of the euro to take any action just yet when its decision-making governing council convenes in Malta this coming week.

Consumer prices in the eurozone slipped by 0.1 per cent in September, according to data published by Eurostat.

That "heaps pressure on the ECB to step up its stimulative action at its meeting" on Thursday, said IHS Global Insight ana…