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At the end of 2014 in the eurozone deflation. The last time this event was reported in the European economy in October 2009. Economists anticipated price declines of 0.1%, so that the final figure was close to the forecast, writes The Financial Times.
As expected, recent data on the negative inflation will push the European Central Bank to the top of a full program of quantitative easing, what could be announced Jan. 22.
Regulators generally expect that the decline in energy prices will lead to increased consumption. Nuclear measure of inflation, which excludes volatile prices such as food and energy, rose to 0,8%.
In general, prices in the euro area grew during the year more than less than 1% per month , while the ECB has promised to keep inflation at just below 2%. According to the chief economist for European Affairs of RBC Capital Markets James Ashley, in the created state of affairs should not blame only the decline in oil prices, but also failed fiscal and monetary policy authorities.
In early January, ECB President Mario Draghi said that in 2015 the eurozone threatens deflation, leading to slower economic growth. This “risk can not be excluded”, but the likelihood of this scenario is low, the banker said.
According to Draghi, the slowdown affect high taxes, bureaucracy, and half-hearted reform decision-making process.
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