Low inflation in the «euro zone» in January

Inflation fell in the "euro zone" during last January than expected, thereby supporting market expectations that the slowdown in price growth will continue to shrink with the economy, which may pave the way for the European Central Bank cut interest rates later this year.

Statistics office said the European Union, "Eurostat", in a statement yesterday, said that consumer prices in 17 countries using the euro fell 0.8 percent in January compared with December, but rose 2.6% on an annual basis. This downward revision from the initial estimate of 2.7%, which was published in the first of February. But higher oil prices in euro to record levels this month, which could slow the downward trend of inflation in the months to come up with the direction of "euro zone" towards recession, which reduces the likelihood of lower interest rates any time soon.

Said Fabio Voice, an economist with "Barclays Capital", "I do not expect the European Central Bank cut interest rates in March," he said, adding, "I think that the ECB sees the level of interest rates are appropriate with the continued pressure from energy prices in terms of high oil prices." The aim of the European Central to keep inflation under two percent, but close to this level in the medium term. Some experts believe that the bank economists may consider reducing the interest of one percent currently to support the deteriorating economy, but oil prices will play a pivotal role in the trends of consumer prices.