When the Bank of Europe was founded, the fight against the the inflation was its main objective. Almost twenty years later, there’s no inflation but prices are lowering across the continent. Certainly, the dependence of Europe from the imported energy makes easy to blame the falling oil prices on the negative inflation but there is some signs on Europe that shows more deep economic troubles.

Euro area annual inflation

Euro area annual inflation is expected to be -0.2% in December 2014, down from 0.3% in November, according to a flash estimate 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 area (EA18) seasonally-adjusted unemployment rate was 11.5% in November 2014, stable compared with October 2014, but down from 11.9% in November 2013. The EU28 unemployment rate was 10.0% in November 2014, down from 10.1% in October 2014 and from 10.7% in November 2013.