If the current trend continues, the price of oil might see its biggest drop in over six years.
The price of Brent crude almost halved this year due to slowing demand, the US shale boom and Opec’s refusal to streamline supply.
And oil prices came under additional pressure yesterday, with a barrel of oil now selling below $56, chiefly because of lowered manufacturing in China for the first time in seven months.
This significant price drop is being reflected at the pumps here, with a liter of unleaded retailing for an average €1.30.
But some economists are warning that such drop in oil prices might push inflation down to a lower index, and that the Eurozone could see “negative inflation during a substantial part of 2015”.
The European Central Bank estimated that 2014’s inflation was 0.5pc. It expects this to rise to 0.7pc in 2015, and 1.3pc in 2016. Economic growth projections have been cut to 0.8pc this year and 1pc in 2016.