Calls for European Central Bank action to help protect the eurozone’s fragile recovery have grown after the release of inflation and jobless data. Official figures showed that eurozone inflation fell to 0.7% in January, down from 0.8% in December and further below the ECB’s 2% target.
It has fuelled worries about whether the euro bloc could suffer deflation, potentially de-railing economic growth. Separate data showed the unemployment rate in December was unchanged at 12%.
The European Union’s statistics agency, Eurostat, said that although there was a 1.7% rise in the cost of food, alcohol and tobacco in January, energy costs fell 1.2%.