(MENAFN) Euro zone inflation turned negative in December for the first time since 2009, with cheap oil driving a bigger than expected decline that may prompt the European Central Bank to start printing money, Arab News reported.
The European statistics office said in a first estimate that prices in the 18 countries using the euro in December were 0.2 percent lower than a year before, after rising 0.3 percent in November. The last time euro zone inflation was negative was in October 2009, when it was -0.1 percent.
Economists expected a -0.1 percent annually decrease in prices. The ECB aims to keep inflation just under 2 percent over the medium term and is widely expected to respond to the lurch into deflation by launching a program of government bond buying with new money, or quantitative easing.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.