Disinflation makes rates more powerful tool

ARTICLE - After some recent volatile swings, July consumer price data from several euro-zone economies 14 August, including France, suggest that a broad disinflation trend is firmly in place.

And for a European Central Bank that's increasingly worried about economic activity, the data provide further justification for a reduction in interest rates. The fall in inflation should make any decline in rates even more effective in boosting the region's growth prospects.

14 August, France became the

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