Arab Today, arab today eurozone inflation held steady at 08 in january
Last Updated : GMT 07:01:29
Arab Today, arab today
Arab Today, arab today

Easing concerns of deflationary pressure on growth

Eurozone inflation held steady at 0.8% in January

Arab Today, arab today

Arab Today, arab today Eurozone inflation held steady at 0.8% in January

Customer buys products in supermarket in Vienna
Brussels - Arab Today

Customer buys products in supermarket in Vienna Eurozone inflation held steady at 0.8 percent in January from the same figure in December, official data showed on Thursday, easing concerns of deflationary pressure on growth. A second estimate from the Eurostat statistics office showed year-on-year inflation in the 18-nation eurozone dropping from 2.0 percent in January 2013 after falling steadily in recent months.
In the 28-nation European Union, inflation fell to 0.9 percent against 1.0 percent in December and year-on-year decreased 2.1 percent.
The data will ease pressure on the European Central Bank (ECB) over concerns about deflation and the need for a further easing of monetary policy.
However Eurostat showed annual negative rates in Cyprus (-1.6 percent), Greece (-1.4 percent) and in Bulgaria (-1.3 percent).
The highest rates were in Britain and in Finland, which each saw a 1.9-percent rise.
Tobacco registered the highest rise in January at 0.8 percent.
The figures came amid fears that disinflation could harm a growing but lacklustre recovery in the eurozone.
Tough EU government austerity policies to combat the debt crisis have sucked demand out of the economy, pushing inflation way below the ECB's target of close to 2.0 percent.
Deflation -- falling prices in real terms -- can encourage consumers to put off buying goods in the expectation that if they wait, they will become cheaper.
That in turn weakens the economy as companies reduce output accordingly, hitting employment and demand, thereby setting off a downward spiral.
Source: AFP

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