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Eurozone November inflation remains low fueling deflation fears

Eurozone November inflation remains low fueling deflation fears
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Inflation was again low in the eurozone in November, the EU’s statistics office has confirmed.

Consumer prices in the 18 countries using the euro fell by 0.2 percent from October.

Compared with November last year inflation was up 0.3 percent.

Cheaper fuel for transport was a big factor, along with lower prices for heating oil and telecoms services.

Restaurant meals, rents and tobacco were more expensive.

Without the volatile prices of energy and unprocessed food, or what the European Central Bank called “core inflation”, prices fell 0.1 percent month-on-month in November for a 0.7 percent year-on-year rise — the same as in October.

The ECB is considering measures to avoid deflation, which has a negative impact on economic growth.

With deflation consumer delay purchases because they wait for goods to become cheaper.

To avoid that, the ECB is looking at launching purchases of government bonds next year to inject more money into the economy and make prices rise faster.