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Plunging oil price pushes eurozone inflation to record low

The plunging price of oil has pushed the rate of eurozone inflation to its record low, but the region has so far managed to stave off deflation.

An estimate from Eurostat, the official statistics body, stated the rate of inflation in the single currency region fell to 0.3 per cent in November, down from 0.4 per cent in October, matching its previous record low.

The cost of energy continued to be a huge drag on prices, declining by 2.5 per cent on an annualised basis, down from a 2 per cent annualised fall in October.

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The eurozone was saved from deflation as prices in the services sector continued to rise, but its 1.1 per cent rise was still lower than the 1.2 per cent seen in October.

However, the figure is so far just an estimate and the month is not yet over, so the precipitous fall in the price of oil seen since yesterday’s Opec meeting may yet feed through to lower inflation.