LONDON - Inflation in the 16 countries that use the euro tumbled to its lowest level for nearly a decade in January compared to a year ago, the European Union's statistics office said Friday.
Eurostat confirmed its earlier flash estimate that the consumer price index dropped to 1.1 per cent in the year to January from 1.6 per cent in the year to December.
The rate is below the European Central Bank's target rate of "close to but below" two per cent and will likely fuel market speculation that the central bank will cut its benchmark rate another half percentage point at next Thursday's rate-setting meeting.
On a month-to-month basis, prices fell 0.8 per cent.
Separately, Eurostat said unemployment edged up further during January to 8.2 per cent from 8.1 per cent in December.
