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The Eurozone consisting of 16 nations has fallen down into deflation during July which has been presented in the data that was released on Friday. The European Central Bank is now facing a fresh challenge as it attempts to spur growth in the currency bloc's economy.
According to Eurostat report consumer prices fell more than forecast from -0.1% in June to -0.6% in July.
The fall in inflation comes in the wake of this year's dramatic slowdown in global economic demand and on the back of weaker energy and food prices.
But the diminishing consumer prices have also helped to add fuel to the fears about the threat of deflation. The Eurozone economy has shrunk by 4.8% YOY during the first three months of the 2009-10.
According to the ECB Chief, Jean-Claude Trichet, the negative inflation in the Eurozone will be present for a short period.
