Skip to content. | Skip to navigation

Personal tools
Sections
You are here: Home Breaking news Eurozone inflation returns to five-year low

Eurozone inflation returns to five-year low

30 November 2014, 14:52 CET
— filed under: , ,

(BRUSSELS) - Inflation in the eurozone returned to a five-year low, official data showed on Friday, raising pressure on the European Central Bank to unveil even more steps to fight the threat of deflation.

The official data also showed that unemployment remained steady at 11.5 percent in October, unchanged amid a stagnating European economy.

The latest figures from Eurostat came days after European Commission chief Jean-Claude Juncker revealed a huge 315-billion euro investment plan to "kickstart" the economy.

Eurostat, the European Union's data agency, reported that inflation fell to 0.3 percent in November, from 0.4 percent the previous month, far off the European Central Bank's target of just under two percent.

Growing concerns about exceptionally low price rises in the 18-country eurozone, which could augur a long period of low growth and falling prosperity, have prompted the ECB to take unprecedented action in recent months.

The new decrease in inflation puts added pressure on ECB chairman Mario Draghi to take even further steps to revive the economy.

The ECB is due to hold its monthly meeting next week when it could announce quantitative easing measures -- a large-scale sovereign bond purchase scheme -- a step that has not been taken until now.

Berenberg Bank economist Christian Schulz said the ECB will have to lower its inflation forecast of 1.1 percent for next year.

"A firm statement of intent, potentially even action in the form of adding corporate bonds to the asset purchase targets, is likely at the meeting next week," Schulz said.

"And as everything is on the table, even sovereign bond purchases are possible early 2015," he added.

- Recovery 'still fragile' -

Reacting to the latest figures, Valdis Dombrovskis, the European Commission's vice president for the euro, told a press conference "the recovery is still fragile."

He added: "Unemployment is still persistently high."

But at 11.5 percent the eurozone unemployment rate was still lower than the 11.9 percent registered in October last year, according to Eurostat.

Germany and Austria registered the lowest unemployment rates at 4.9 percent and 5.1 percent in October, with Spain the highest at 24 percent.

Greece registered a rate of 25.9 percent in August, when the last figures were available.

In the 28 European Union member states, unemployment stood at 10 percent in October this year, unchanged from September.

Eurostat estimated that in October 2014, 24.413 million people were unemployed in the 28 EU member states, including 18.395 million in the 18-country eurozone.

That marks an increase of 42,000 in the EU 28, and 60,000 in the eurozone over September 2014.

Youth unemployment remained at alarming levels in some parts of the EU, though levels have dropped.

In October, the jobless rate for young people stood at 21.6 percent in the EU and 23.5 percent in the eurozone.

The lowest youth unemployment rates in October were registered in Germany at 7.7 percent and the Netherlands at 9.7 percent.

The highest rates were recorded in Spain at 53.8 percent, in Greece at 49.3 percent (in August), and Italy at 43.3 percent.

Overall, 4.983 million young people under 25 years old were unemployed in the EU, including 3.356 million of them in the eurozone.

Euro area annual inflation down to 0.3% [Eurostat]

Euro area unemployment rate at 11.5% [Eurostat]


Document Actions