EU figures showed that the eurozone slipped into deflationary territory in December for the first time since the height of the financial crisis in 2009.
EU figures challenged the European Central Bank (ECB) to take action to avert a new economic crisis in Europe.
Consumer prices in the single currency area fell 0.2 per cent last month
The prices were dragged down by plummeting oil prices and signalling big problems ahead with renewed crisis in debt-plagued Greece also on the horizon.
World stocks nosedived and the euro struck nine year lows against the dollar this week on renewed fears of a Greek exit from the eurozone if poll-leading leftists win snap elections this month in Athens.
Amid the instability, the first confirmed sign of a real fall in prices since the financial crisis could force the ECB’s hand to do more to prop up the single currency.
Deflation is officially defined by prices falling over a longer period
ECB is now under pressure to quickly put prices back in positive territory.