LONDON, Sept 27 (Reuters) - A key market gauge of the euro zone’s inflation expectations fell to its lowest level since early July on Friday, heading back towards recent record lows.
The five-year, five-year breakeven forward fell to as low as 1.188%. It has fallen sharply this week as dismal PMI data from powerhouse economy Germany fueled concerns about the euro zone’s long-term growth and inflation prospects.
The inflation gauge, tracked by the European Central Bank, is also nearing record lows hit in June around 1.13% and reflects growing concern that ECB stimulus will be unable to lift inflation. (Reporting by Dhara Ranasinghe; editing by Yoruk Bahceli)