Euro area annual inflation down to -0.6 pct in January, says Eurostat

Newsroom 30/01/2015 | 14:57

Euro area consumer prices are expected to be 0.6 percent lower this January compared to a year earlier, thus further fueling deflation fears, data from Eurostat, the statistical office of the European Union, showed on Friday. The annual inflation stood at -0.2 percent in December.

According to Reuters, “the euro zone has only endured negative inflation rates in one other period, from June to October 2009. The 0.6 percent decline this month matched the lowest figure during that period, in July 2009”.

The 0.6 percent contraction was triggered by a drop in energy prices (-8.9 percent, compared to -6.3 percent in December).

The statistical office also expects price falls for food, alcohol & tobacco (-0.1 percent, compared with 0.0 percent in December) and non-energy industrial goods (-0.1 percent, compared with 0.0 percent in December). Only prices for services are expected to increase (1.0 percent, compared with 1.2 percent in December).

Simona Bazavan