Eurozone CPI falls, reviving deflation fear

Eurozone inflation edged down to 0.7% on year in January from 0.8% in December, brought down by a sharp fall in energy costs. Consensus was for a rise to 0.9%. Overall CPI is now under half that of Japan. A question for policy makers in the eurozone is whether deflation is a major threat. ECB President Mario Draghi has indicated that he isn't too concerned, saying at the end of last month that "We don't have a situation as in Japan."