FRANKFURT, Germany (AP) -- The European Central Bank has cut its inflation forecast for next year, another sign of how weak the economic recovery is in the 17 countries that use the euro.
The ECB cut the forecast to 1.1 percent from the previous 1.3 percent forecast. The ECB aims to have inflation of just under 2 percent.
The inflation figure is significant because it indicates demand for goods from consumers will be weak. Inflation for the eurozone as a whole was only 0.9 percent in November on an annual basis.
The ECB left its benchmark interest rate unchanged Thursday at 0.25 percent even though economic growth slowed to a bare 0.1 percent in the third quarter.