Eurozone inflation rate stable at low 0.8 per cent in January, still well below target

BRUSSELS – The inflation rate for the 18-nation eurozone remained steady at a low 0.8 per cent in January, according to revised figures released Monday.

Eurostat, the EU’s statistics office, said the inflation rate, which measures consumer price increase over 12 months, was the same as in December — still well below the European Central Bank’s target of just below 2 per cent.

The agency had previously estimated the January rate to be 0.7 per cent.

Low inflation in recent months has raised concerns of deflation, a sustained drop in prices that can choke off growth. Despite the marginal revision upward to the January figure, the weak rate will keep pressure on the ECB to provide more stimulus to the economy.

Eurostat says the annualized inflation rate for the wider 28-nation European union — which includes members like Britain that don’t use the euro — fell to 0.9 per cent from 1 per cent in December.