Drop in energy prices causes deflation in Euro zone

BRUSSELS, Jan 30 (KUNA) -- Euro area annual inflation is expected to be negative by 0.6% in January, down from negative of 0.2% in December 2014,according to figures released Friday by Eurostat, the EU's statistical office.
This negative rate for euro area annual inflation in January is driven by the fall in energy prices which dropped by 8.9%, compared with 6.3% in December, it noted. Prices are also expected to fall for food, alcohol & tobacco and non-energy industrial goods.
Only prices for services are expected to increase last December.
Meanwhile, the euro area unemployment rate was 11.4% in December 2014, down from 11.5% in November 2014. This is the lowest rate recorded in the euro area since August 2012, said Eurostat. The EU unemployment rate was 9.9% in December 2014, down from 10.0% in November 2014. This is the first time the rate for the EU has fallen below 10.0% since October 2011.
Eurostat estimated that 24.056 million men and women in the EU, of whom 18.129 million were in the euro area, were unemployed in December 2014. (end) nk.ajs