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Euro-Area Prices Extend Slide in Sign ECB Late to Deflation Game
Consumer prices fell more than economists forecast in January, underlining the challenges Mario Draghi faces as he seeks to stave off a deflationary spiral. The annual inflation rate fell to minus 0.6 percent, matching the biggest decline in prices in the history of the single currency. The drop exceeded economists’ estimates for a 0.5 percent slump. Unemployment fell to 11.4 percent in December, according to a separate report published Friday. Sinking prices combined with stubbornly high unemployment led the European Central Bank president to announce a 1.1 trillion-euro ($ 1.2 trillion) stimulus plan last week ... (full story)