The Eurozone Just Recorded Its Joint-Deepest Deflation Ever

REUTERS/Tyrone Siu

Europe's deflation deepened in January - prices fell 0.6% year on year.

Inflation figures came in at 0.2% in December, the lowest since 2009, when prices tumbled immediately after the financial crisis. The worst deflation recorded in 2009 was -0.6%.

The core figure is being closely watched - it fell back to 0.7% in December.

The figure tries to measure inflation but strips out very volatile items like food, and crucially, energy. Eurozone inflation has been dropping for a couple of years now, but falling oil prices are what's finally pushed the index into negative territory.

Spanish prices in December fell 1.5%, the steepest drop of any major eurozone economy, and Germany joined the club in January with prices down 0.5% year on year.