Spain is in serious danger of sliding into a deflationary phase - reflecting a tendency across the entire eurozone. What seems good for consumers is poison for an economy though, and much harder to combat than inflation.
Central bankers around the world are puzzled by the lack of inflationary pressures despite decent economic growth. Some of them are now blaming the so-called Amazon effect for the phenomenon.
The number of foreign tourists visiting Spain in July fell for the first time in nearly a decade, as European sunseekers returned to cheaper rival sunshine destinations like Turkey and Tunisia.
The Turkish economy is in turmoil as fears over an ongoing currency and debt crisis grow. While the problem is being billed in some quarters as a primarily domestic one, concerns of wider contagion abound.
The 19-member eurozone now boasts the lowest jobless rate in about 10 years, the EU's statistics office has announced. It also reported a slight increase in consumer prices after months of declining inflation.
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