According to Reuters, “the euro zone has only endured negative inflation rates in one other period, from June to October 2009. The 0.6 percent decline this month matched the lowest figure during that period, in July 2009”.

The 0.6 percent contraction was triggered by a drop in energy prices (-8.9 percent, compared to -6.3 percent in December).

The statistical office also expects price falls for food, alcohol & tobacco (-0.1 percent, compared with 0.0 percent in December) and non-energy industrial goods (-0.1 percent, compared with 0.0 percent in December). Only prices for services are expected to increase (1.0 percent, compared with 1.2 percent in December). (source: business-review.eu)