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Eurozone inflation drops drastically in Nov.
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Annual inflation in the 15-nationeuro plunged to 2.1 percent in November, representing a 14-month low, European Union's Statistical Office of the European Communities (Eurostat) said on Wednesday.

The level nears the 2.0-percent criteria that the European Central Bank (ECB) defines in inflation to keep prices stable in the zone.

In October, inflation rate was 3.2 percent, while it was 3.1 percent in November of last year.

In the 27-nation EU, annual inflation was 2.8 percent in November, down from October's 3.7 percent, according to the Eurostat. A year earlier the rate was 3.1 percent.

Inflation in the euro hit a record high of 4.0 percent in June and July, and then embarked on downward trend as energy and food prices have sharply fallen because of dire economic situation.

The Eurostat figures confirmed its first estimate released earlier this month.

The drastic drop in inflation provides room for further interest rate slashes by the ECB, which axed in the beginning of this month benchmark rate from 3.25 percent to 2.50 to stimulate economic growth.

(Xinhua News Agency December 18, 2008)

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