European inflation dips below ECB's target

Inflation in the eurozone dipped below 2% for July, according to Eurostat. The figure of 1.9% was down from 2% in June, helped by a 0.2% drop in prices - the largest monthly fall in two years, reports the Financial Times.

Declines in the cost of clothing - down a monthly 5.5%, and food, which was 0.3% lower, were particularly marked. The strongest price rises were seen in the hotels and restaurants sector - up 1% on the month.

Core inflation, which excludes energy and unprocessed food costs, fe