Euro Area Inflation Rate Turns Negative


Consumer prices in the Euro Area decreased 0.2 percent year-on-year in February of 2016, following a 0.3 percent rise in the previous month and lower than market expectations, preliminary estimates showed. The inflation rate turned negative for the first time in five months, falling the most in a year as oil prices weight.

Looking at the main components of euro area inflation, services is expected to have the highest annual rate in February (1.0 percent, compared with 1.2 percent in January), followed by food, alcohol & tobacco (0.7 percent, compared with 1.0 percent in January) and non-energy industrial goods (0.3 percent, compared with 0.7 percent in January). In contrast, energy fell at a faster pace (-8.0 percent, compared with -5.4 percent in January).

Core inflation rate which excludes prices of energy, food, alcohol and tobacco slowed to 0.7 percent compared to 1 percent in the previous month. 

Euro Area Inflation Rate Turns Negative


Eurostat | Joana Taborda | joana.taborda@tradingeconomics.com
2/29/2016 10:18:21 AM