The Eurozone’s annual inflation rate stayed at 0.2% for July according to estimate today by Eurostat, with the unemployment rate remaining flat.

The figures suggesting that Europe’s economy maintained only modest growth for the last quarter.

However, these figures are an improvement on earlier in the year when inflation fell into negative territory. The target for inflation is 2% and the ECB has just begun a programme of quantative easing in order to reach it, aiming to pump one trillion euros into the economy before September 2016.

James Howat, European Economist at Capital Economics, said the figures were worrying: “Surveys of employment intentions have weakened recently, suggesting that the labour market recovery will remain pretty weak.”

He also pointed out that the ECB still has a lot of work to do to hit its inflation target.

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