Euro prices fall at record pace during January
CONSUMER prices in the Eurozone fell at the fastest pace ever recorded in a single month between December and January, though official statistics showed the annual growth rate holding steady at 0.8 per cent.
The consumer price index (CPI) is far below the European Central Bank (ECB) target of just below two per cent. Though inflation pressures are usually muted between December to January, this year prices dropped by 1.1 per cent, the largest monthly fall on record.
Many Eurozone states are recording extremely low inflation, while Cyprus and Greece are in a state of outright deflation. Slovakian CPI is unchanged from the same month last year.
Of the four largest economies in the Eurozone, only German inflation is above one per cent, while French, Italian and Spanish figures sit at 0.8, 0.6 and 0.3 per cent respectively.
“The number might support the euro to an extent but it’s far too low for the ECB to rule out reconsidering the existing liquidity measures. If anything this is likely to prompt new extraordinary measures.” said Jonathan Pryor at Investec.