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Surprise drop in euro zone inflation shows deflation risk
Euro zone inflation fell in December after a small increase the previous month, increasing the European Central Bank's challenge of avoiding deflation as well as supporting the bloc's recovery. Consumer price inflation in the 17 countries then sharing the euro stood at 0.8 percent year-on-year in the last month of 2013, compared with 0.9 percent in November, data from the EU's statistics office Eurostat showed on Tuesday. December's reading takes inflation back to near a four-year-low of 0.7 percent in October. "Today's figures show that it's too early for the ECB to become complacent about deflation risks, ... (full story)
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