Eurozone inflation fell deeper into negative territory in September, official data said Friday, amid plummeting demand due to the coronavirus crisis.

The EU’s Eurostat data agency said inflation fell to -0.3% last month, a drop from -0.2% in August and way off the official target of just under two per cent.

The descent into deflationary territory will put pressure on the European Central Bank to draw up further stimulus measures, already at €1.35 trillion, and should encourage governments to spend more.

Policymakers worry about falling prices as they can encourage consumers to hold off making purchases in the hope that they fall further, which can lead to a spiral of dropping economic activity, employment and prices.

Over the longer term, the ECB sees inflation averaging just 1.3% in 2022, still far below its target, which has triggered calls for reform.

The eurozone should have an inflation goal ‘that the public can easily understand’ and is calculated in a way that better reflects people’s everyday lives- ECB chief Christine Lagarde

ECB chief Christine Lagarde said on Wednesday that the eurozone should have an inflation goal “that the public can easily understand” and is calculated in a way that better reflects people’s everyday lives.

Inflation in the 19-nation eurozone has stayed stubbornly low for years despite unprecedented economic stimulus from the ECB, keeping the target well out of reach and fuelling calls for a rethink.

Pursuing a less strict inflation target would follow in the footsteps of the US Federal Reserve which last month pledged more leeway, allowing inflation to rise above 2%.