Inflation falls further in eurozone

Jan. 31, 2014 at 9:27 AM

BRUSSELS, Jan. 31 (UPI) -- The annual inflation rate in the eurozone dropped to 0.7 percent, the European Commission's data agency estimated Friday.

In a flash estimate, the statistical office Eurostat said inflation slipped one tick lower than the December rate of 0.8 percent with annual rates ranging from 1.8 percent for food, alcohol and tobacco to minus 1.2 percent for energy products.

Economists in Europe have noted concern for low inflation rates in recent months. At the World Economic Forum in Davos, Switzerland, last week, International Monetary Fund Director Christine Lagarde sounded an alarming note about the chance for the region to fall into deflation.

Lagarde said inflation in the eurozone was "way below" where it should be.

Eurostat said prices for services rose at an annual rate of 1.1 percent in January. Consumer prices for non-energy industrial goods rose 0.2 percent in the month.

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