LONDON, Oct 29 (Reuters) - A key market gauge of long-term inflation expectations in the euro zone fell to its lowest level in almost a year on Monday, reflecting growing concern that a weakening economic environment will push down inflation in the bloc.
The five-year breakeven forward rate — a measure closely tracked by the European Central Bank — fell to 1.6578 percent . It remains well below the ECB’s near-2 percent inflation target.
Euro zone business growth lost far more momentum than expected as it entered the final quarter of 2018, data last week showed.
Chinese data over the weekend fuelled concerns about the global growth outlook, with profit growth at Chinese industrial firms slowing for the fifth consecutive month in September. (Reporting by Dhara Ranasinghe Editing by Tommy Wilkes)