BRUSSELS (AFX) - The European Commission expects inflationary pressure to continue to level off as long as oil prices remain below the 29 usd per barrel threshold, said a commission spokesman.
"We do expect a positive impact on inflation, if oil prices stabilise at a lower level than the ones predicted by the commission" at 29 usd/barrel, he said after Eurostat released its December harmonised index of consumer prices (HICP) figures.
The euro zone's annual inflation fell back to 2.6 pct in December from 2.9 a month earlier on the "significant" downward impact of energy prices, with the oil price now around 27 usd per barrel.
Transport fuel prices fell by 2.8 pct in December, while heating fuel prices dropped by 5.2 pct, a commission document said. Prices for heat energy, such as steam used for heating homes, posted a monthly 2.3 pct rise, but failed to offset the total downward impact on the energy component, it said.
But on an annual basis, energy prices have the biggest upward impact on inflation, the commission document said.
Transport fuel prices rose 9.1 pct year-on-year, accounting for most of the upward impact, while prices for gas used for house heating rose 19.2 pct and those of liquefied gas for heating by 27.2 pct.
Electricity is the only energy component with below average annual inflation at 1.1 pct.
Outside the HICP's energy component, the commission document pointed to a 5.1 pct annual fall in communication services prices.