Cheaper gas and heating oil reined in consumer price growth in the euro zone in November, despite more expensive restaurants and cafes, rents and cigarettes, data from the European Union's statistics office Eurostat showed on Friday.
Eurostat said consumer prices in the 19 countries sharing the euro fell 0.1 per cent month-on-month in November for a 0.6 per cent year-on-year rise, an acceleration from the annual increases of 0.5 per cent in October and 0.4 percent in September.
The European Central Bank wants to keep inflation below, but close to 2 per cent and has been buying €80 billion worth of government bonds a month to inject more cash into the banking system and induce higher lending to the economy to boost prices.
Volatile energy prices fell 0.2 per cent on the month for a 1.1 per cent year-on-year decline in November while also volatile unprocessed food costs rose 0.4 per cent month-on-month for a 0.7 per cent annual gain.
To gauge core inflation, the ECB looks at a measure of inflation without these volatile components, which showed prices easing 0.1 per cent month-on-month for a 0.8 per cent annual rise.
This is up from 0.7 per cent year-on-year in October, but the same as in four previous months, which suggests that core inflation has not yet responded to the ECB’s ultra-loose monetary policy.
