Key market gauge of long-term euro zone inflation at lowest since late 2016

Published 01/29/2019, 05:00 AM
© Reuters. FILE PHOTO - A woman shops at a fruits and vegetables shop at a food market in the Andalusian capital of Seville, southern Spain

LONDON (Reuters) - A key gauge of the market's long-term expectations for inflation in the euro zone dropped on Tuesday to its lowest level since late 2016, in a further sign that weak economic data globally is weighing on the inflation outlook.

© Reuters. FILE PHOTO - A woman shops at a fruits and vegetables shop at a food market in the Andalusian capital of Seville, southern Spain

The five-year, five-year breakeven forward, a key market gauge tracked closely by the European Central Bank, fell to as low as 1.5059 percent. The ECB targets inflation at close to 2 percent.

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