Euro Area Falls Further Into Deflation


Prices in the Eurozone are expected to decline 0.6 percent year-on-year in January, following a 0.2 percent drop in the previous month. It is the lowest figure since mid-2009 and below expectations due to a fall in fuel cost.

The decline in consumer prices in January is driven by the fall in the cost of energy  (-8.9 percent, compared with -6.3 percent in December). Prices are also expected to fall for food, alcohol and 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 cost of services is expected to increase (1.0 percent, compared with 1.2 percent in December).

Core inflation rate which excludes prices of energy, food, alcohol and tobacco is expected to slow to 0.6 percent in January from 0.7 percent in December.

Euro Area Falls Further Into Deflation


Eurostat | Joana Taborda | joana.taborda@tradingeconomics.com
1/30/2015 4:20:05 PM