European Inflation Turns Negative in Dec.; Dip Led by Energy Prices (FXE) (UUP)

Euro area annual inflation is expected to be -0.2% in December 2014, down from 0.3% in November, according to a flash estimate4 from Eurostat, the statistical office of the European Union.

This negative rate for euro area annual inflation in December is driven by a fall in energy prices (-6.3%, compared with -2.6% in November), while prices remain stable for food, alcohol & tobacco (0.0%, compared with 0.5% in November) and non-energy industrial goods (0.0%, compared with -0.1% in November). The only annual increase is expected for services (1.2%, stable compared with November).

(The euro is down about 0.5 percent versus the U.S. dollar in early trading.)

You May Also Be Interested In

• Downside risks for EUR/USD have undoubtedly risen overnight - ING
• Soft UK retail sales unlikely to change BoE stance: analyst
• ECB's Lagarde says inflation more likely to ease but risks both ways