Brussels, 30/01/2015 (Agence Europe) - Annual inflation in the eurozone is estimated to have fallen by -0.6% in January 2015 from -0.2% in December, according to a flash assessment published by the EU Statistical Office (Eurostat) on Friday 30 January.
The price falls are due to a slump in energy prices (-8.9%, compared with -6.3% in December). Prices are also estimated to have fallen for food, drink and tobacco (-0.1%, compared with 0.0% in December) and industrial goods apart from energy (-0.1%, compared with 0.0% in December). The only rise in annual prices was for services (1.0%, compared with 1.2% in December).
As in December, the European Commission says that these price falls cannot be described as genuine deflation. It says the negative inflation is essentially due to 'external factors' and 'underlying inflation,' a seasonally-adjusted index shows that inflation is positive and stands at 0.6%, explained a Commission spokeswoman. She said the falling prices do not reflect entire swathes of the eurozone economy and will not automatically be reproduced. On Thursday 5 February, the European Commission will publish its winter economic forecasts, which will include updated inflation figures. (MB)