In November 2014, consumer prices fell by 0.7 percent in comparison to the corresponding period of the previous year, and thus the inflation rate is near a record-low level.

Modest inflation stems from several factors. In addition to muted inflationary pressures that still prevail in Europe and public utility price cuts the significant slump of crude oil prices on global markets has also increasingly influenced the level of inflation.

However, core inflation, which excludes price changes in food, energy and public utility services, is higher (1.2 percent), but it is still a modest figure.

For the year 2014, the inflation rate is expected to be around -0.2 percent, lower than the projection of the Ministry for National Economy in its official autumn macro-economic forecast (0.0 percent).

Due to rebounding domestic demand, the Ministry is expecting that prices are set to rise. In 2015, prices are seen to increase slightly, by around 1.8 percent.

(Ministry for National Economy)