Eurozone inflation falls hit by oil price slump

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Eurozone inflation falls hit by oil price slump

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Eurozone inflation has fallen to minus 0.6 percent equaling the depths it sunk to following the financial crisis.

Inflation has slumped due to the dramatic fall in oil prices.

Deflation was deepest in Greece in January, followed by Spain, while almost all euro zone countries had negative rates.

Only Austria and Malta have escaped.

The Eurozone will be wary of sliding into a full-blown Japanese-style deflationary spiral.

Right on cue the quantitative easing programme announced by the European Central Bank last month to reinvigorate economic growth looks set to block any further deflation.

The €60bn a month plan will be launched from March.

Once the fall in oil prices is taken out of the equation the “core” rate is still positive at 0.6 for January.