Eurozone and US inflation prices have dropped to its lowest in years.
Reports show that the figures for April dropped to 1.2% and the US inflation at 1.1%, both target inflation at 2%.
The main cause of the fall in both cases was the lower oil price which is down to less to $93 a barrel from $120 a barrel in March and the weak demands is also another main factor for both economies.The fall in the cost in oil prices is the main cause of the US monthly inflation rate which as has fallen to its lowest since December 2008.
On Wednesday, reports showed the eurozone was still in recession due to its weak growth in the economy, budget cuts and high rate of unemployment.
France recently just slipped back into recession while Germany grew by 0.1% in the first quarter of the year. The Greece economy went through the overall deflation. European Central Bank cut the interest rates to a record of 0.5% earlier this month.
Inflation can also be caused by low inters rate however with weak economic growth ,authorities get more concerned about the deflation .According to analysts reports show signs that inflation may be problem in the future .
The highest price rises were found in Romania, Netherlands and Estonia.
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