Euro Area Falls Into Deflation


Eurozone annual inflation rate is expected to be -0.2 percent in December, down from 0.3 percent in November, provisional estimates from Eurostat showed. It is the first fall in consumer prices since October of 2009, driven by decline in energy cost.

This negative rate is driven by a fall in energy prices (-6.3 percent, compared with -2.6 percent in November), while prices remain stable for food, alcohol and tobacco (0.0 percent, compared with 0.5 percent in November) and non-energy industrial goods (0.0 percent, compared with -0.1 percent in November). The only annual increase is expected for services (1.2 percent, stable compared with November).

Core inflation rate which excludes prices of energy, food, alcohol and tobacco is expected to increase slightly to 0.8 percent in December from 0.7 percent in the previous two months. 

Euro Area Falls Into Deflation


Eurostat | Joana Taborda | joana.taborda@tradingeconomics.com
1/7/2015 10:42:16 AM