BRUSSELS (Reuters) – Euro zone consumer prices fell by more than expected year-on-year in November pulled down by a sharp drop in energy costs, a flash estimate from the European Union’s statistics office Eurostat showed on Tuesday.
Eurostat said inflation in the 19 countries sharing the euro was -0.3% year-on-year, the same as in September and October and below expectations of -0.2% in a Reuters poll of economists. Month-on-month prices also fell by 0.3%.
It was the fourth consecutive month of negative annual inflation.
Energy prices tumbled -8.4% year-on-year in November while unprocessed food was 4.2% more expensive.
Without these two most volatile components, the so-called core inflation was a positive 0.4% the same as in October. An even narrower measure excluding also alcohol and tobacco showed prices going up 0.2% year-on-year, also the same as in October.
The European Central Bank wants to keep annual inflation below, but close to 2% over the medium term. However, it has failed to reach that target in the last eight years despite extensive bond buying on the secondary market to inject more cash into the economy and boost demand.
(Reporting by Jan Strupczewski; editing by Philip Blenkinsop)
