Eurozone Pricefall Fuels Deflation Fears

Europe Is Facing Increased Deprivation With Multi-Generational Families
  • 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.