Courtesy of Mish.
Eurostat released HICP Harmonized Index of Consumer Prices statistics today.
In spite of promising that deflation would not hit again, here we are, and for the second month too.
Euro area annual inflation is expected to be -0.6% in January 2015, down from -0.2% in December 2014 according to a flash estimate from Eurostat, the statistical office of the European Union. This negative rate for euro area annual inflation in January is driven by the fall in energy prices (-8.9%, compared with -6.3% in December). Prices are also expected to fall for food, alcohol & tobacco (-0.1%, compared with 0.0% in December) and non-energy industrial goods (-0.1%, compared with 0.0% in December). Only prices for services are expected to increase (1.0%, compared with 1.2% in December).
HICP vs. Year Ago
click on any chart for sharper image
HICP Components by Month
HIPC 2005 to 2015 History
Even Germany in Deflation
The BBC reports Denmark, Deutschland and deflation: strange times for EU.
New official figures from Germany show that prices have fallen, by 0.5%, over the previous 12 months.
Meanwhile the Danish Central Bank has cut one of its main interest rates for the second time in a week.