Eurozone inflation slump to just 0.3% in 2020 and 1.3% by 2022: European Central Bank

Eurozone inflation is set to slump to just 0.3 percent this year, European Central Bank chief Christine Lagarde said Thursday as she unveiled fresh forecasts taking into account the economic impact of the coronavirus pandemic.

Price growth is expected to climb to 0.8 percent in 2021 and 1.3 percent in 2022, inching closer to the bank's goal of reaching an inflation target of just below 2.0 percent.

Thursday's projections are well below those unveiled in March, when the ECB predicted inflation of 1.1, 1.4 and 1.6 percent for 2020-2022. "Over the medium term, weaker demand will put downward pressure on inflation," Lagarde said.