News Column

Eurozone Inflation at 23-month Low

Dec. 14, 2012

Annual inflation in the eurozone slipped to a 23-month low of 2.2 per cent in November, the European Union's statistics office confirmed Friday.

The decline in consumer prices from 2.5 per cent in October is likely to add to market speculation that the European Central Bank (ECB) could trim interest rates in the coming months to help boost flagging economic growth.

The drop in the November took the inflation rate closer to the ECB's annual target of 2 per cent.

The decline was in line with analysts' forecasts and followed signs of an easing of energy costs.

Underlining the grim state of the eurozone economy, the statistics also released data showing the currency bloc's labour force shrinking by 0.2 per cent in the third quarter compared with the three months to the end of June.

Compared with the third quarter of last year, employment fell by 0.7 per cent.

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Source: Copyright 2012 dpa Deutsche Presse-Agentur GmbH

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