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Image header Agence Europe
Europe Daily Bulletin No. 10991
ECONOMY - FINANCE / (ae) economy

Inflation falls to 0.8% in eurozone

Brussels, 07/01/2014 (Agence Europe) - Inflation in the eurozone fell to 0.8% in December, according to initial estimates issued by the European statistical office, Eurostat, on Tuesday 7 January, reviving fears of deflation in the single currency area.

Price rose slightly in November to 0.9% after falling to the lowest level in nearly four years, 0.7%, in October. In December 2012, eurozone inflation stood at 2.2%.

The December level is well below the European Central Bank's target of just under 2% in the medium-term.

Among the main components of eurozone inflation, food, alcohol and tobacco is expected to have the highest rate in December, with prices rising by 1.8%, up from 1.6% in November, followed by services (1.0%, down from 1.4% in November). Non-energy industrial goods saw no change in price (0.2%) and energy prices remained stable (0.0%, compared with a sharp fall to 1.1% in November). (LC/transl.fl)