Euro Area Deflation Slows


Prices in the Eurozone fell 0.3 percent year-on-year in February, following a 0.6 percent drop in the previous month. Energy cost is expected to decrease at a slower pace while food prices increased.

Looking at the main components of euro area inflation, services is expected to have the highest annual rate in February (1.1 percent, compared with 1.0 percent in January), followed by food, alcohol & tobacco (0.5 percent, compared with -0.1 percent in January), non-energy industrial goods (-0.2 percent, compared with -0.1 percent in January) and energy (-7.9 percent, compared with -9.3 percent in January).

Core inflation rate which excludes prices of energy, food, alcohol and tobacco is expected to be 0.6 percent, the same as in the previous month.

Euro Area Deflation Slows


Eurostat | Joana Taborda | joana.taborda@tradingeconomics.com
3/2/2015 10:11:16 AM