Eurozone consumer prices fell at a record-equalling pace in January, more steeply than expected and appearing to vindicate the European Central Bank’s money-printing plan to combat sustained deflation.

The European statistics office said in a first estimate yesterday that prices in the 19 countries using the single currency in January were 0.6 per cent lower than a year earlier, after a 0.2 per cent decline in December.

The figure was below expectations for a decline to -0.5 per cent.

The eurozone has only endured negative inflation rates in one other period, from June to October 2009. The 0.6 per cent decline this month matched the lowest figure during that period, in July 2009.

Sharply reduced fuel costs explained the drop.

Energy prices plunged 8.9 per cent. Unprocessed food was 0.9 per cent cheaper, outweighing a one per cent rise in the cost of services. Oil prices have more than halved since June, with Brent at just below $50 per barrel yesterday.

Core inflation, which excludes volatile energy and unprocessed food prices, dipped to 0.6 per cent in January from 0.7 per cent for the previous three months.

Headline inflation has also been in what the ECB calls the ‘danger zone’ – below one per cent – since October 2013.

Germany this month joined the countries with negative inflation rates this month.

In Spain, consumer prices fell for a seventh consecutive month and at their fastest rate in the eurozone era.

Eurostat’s flash estimate for the month does not include a monthly calculation.

In a separate release, Eurostat said eurozone unemployment dipped to 11.4 per cent in December, after three months stuck at 11.5 per cent. The number of people without a job decreased by 157,000 from a month before to 18.129 million.