The eurozone slipped into deflationary territory for the first time since 2009 after prices dropped in December, official figures show.
The fall could challenge the ECB to take action to avert a new economic crisis in Europe.
Inflation in the single currency area was at minus 0.2 per cent last month, dragged down by plummeting oil prices and signalling big problems ahead with renewed crisis in debt-plagued Greece also on the horizon.
World stocks nosedived and the euro struck nine-year lows against the dollar this week on renewed fears of a Greek exit from the eurozone if poll-leading leftists win snap elections this month in Athens.
The last time consumer prices fell in October 2009 was at the height of the global financial crisis.
Amid the instability, the first confirmed sign of a fall in consumer prices since the last crisis could force the European Central Bank to act more boldly to prop up the single currency.
The European Commission insisted Wednesday that "temporary negative" prices were different from true long-term deflation.
In a deflationary spiral, businesses and households delay purchases, throttling demand, triggering recession and causing companies to lay off workers.
Spokeswoman Annika Breidthardt said low inflation would "continue for the short term, but we expect it to pick up again once the economy gradually strengthens and wages rise".
Analysts were more pessimistic, however.
"December's sharp drop ... could herald the start of a prolonged and damaging bout of deflation in the currency union, which may in turn threaten to re-ignite the region's debt crisis," said Jonathan Loynes, economist of Capital Economics in London.
Deflation is officially defined by prices falling over a prolonged period, and the ECB is now under pressure to reverse the trend quickly.
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