Euro inflation slows further

CORE inflation in the Euro area is at the lowest level in the region’s history, with 0.7 per cent price growth in December 2012.

The headline figure for the bloc’s consumer price inflation last month was 0.8 per cent, but the core number that excludes volatile items dropped to the lowest in the single currency’s history.

“We suspect that Eurozone inflation is set to remain very low for a prolonged period,” said Howard Archer, chief European economist at IHS Global Insight.