Unemployment in the Euro zone hit a 10-year high at 9.4 per cent in June, less than expected, but with July inflation heading deeper into negative territory than predicted, the outlook of Europe’s economy is gloomy.

Unemployment numbers soared by 158,000 from May to June in the euro-zone area with around 3.17 million more people out of work compared to June 2008.

The Euro zone inflation rate saw consumer prices falling at an annualized rate of 0.6 per cent. The continued drop in prices, raises the fear of deflation.

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