31/07/2009 (Agence Europe) - According to a flash estimate issued by Eurostat on 31 July, the general level of prices in the euro area fell by 0.6% in July. In June, the annual inflation rate was -0.1%. “The fact that, at the moment, prices are falling is not bad news for consumers”, although the trend is not necessarily lasting or widespread, said the spokeswoman of Economic and Monetary Affairs Commissioner Joaquin Almunia. Last month, only 18% of prices actually fell, she pointed out, and we are “far from having a widespread fall in prices”. The current drop in prices is to a large extent due to base effects related to low energy and raw material prices in the past. Once these have dissipated, the European economy's inflation figures will become positive once again. (A.B./transl.rt)