✂ Fed’s first rate cut since 2020: Use our free Stock Screener to find new opportunities fastExplore for FREE

Cheaper fuel keeps Euro zone inflation low in November

Published 17/12/2014, 10:13
© Reuters. An illuminated euro sign is seen in front of the headquarters of the European Central Bank in Frankfurt
NYF
-

BRUSSELS (Reuters) - Falling prices of fuel and heating oil as well as telecommunications kept euro zone inflation low in November, the European Union's statistics office said on Wednesday, confirming its earlier flash estimate.

Eurostat said consumer prices in the 18 countries sharing the euro fell 0.2 percent month-on-month in November for a 0.3 percent year-on-year rise, as expected by markets.

Eurostat data showed that falling prices of fuel for transport had the biggest downward pull on the year-on-year number, subtracting 0.22 percentage point from the end result.

Cheaper telecoms services and heating oil both subtracted 0.09 percentage points each. Prices grew in restaurants and cafes, adding 0.09 percentage points to the end number, higher rents added 0.08 points and more expensive tobacco added 0.06 points.

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 wants to keep headline inflation below, but close to 2 percent and is concerned that a long period of very low inflation like now could turn in to deflation, when consumer delay purchases because they wait for goods to become cheaper.

© Reuters. An illuminated euro sign is seen in front of the headquarters of the European Central Bank in Frankfurt

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

(Reporting By Jan Strupczewski; editing by Philip Blenkinsop)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.