Euro Area Inflation Rate Confirmed at -0.2%

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 in line with preliminary estimates. The inflation rate turned negative for the first time in five months, falling the most in a year as oil prices weight. The monthly index increased 0.2 percent, higher than 1.4 percent in January and better than market expectations of 0.1 percent.

The largest upward impacts to euro area annual inflation came from restaurants and cafes (+0.13 percentage points), rents (+0.08 pp) and fruit (+0.06 pp), while fuels for transport (-0.49 pp), heating oil (-0.24 pp) and gas (-0.10 pp) had the biggest downward impacts.

European Union annual inflation was -0.2 percent, also down from 0.3 percent in January. Negative annual rates were observed in fifteen Member States. The lowest were registered in Cyprus (-2.2 percent) and Romania (-2.1 percent) while the highest were recorded in Belgium (1.1 percent), Austria and Malta (both 1.0 percent). Compared with January 2016, annual inflation fell in twenty Member States, remained stable in one and rose in six. 

Core inflation rate which excludes prices of energy, food, alcohol and tobacco slowed to 0.8 percent compared to 1 percent in the previous month and preliminary estimates of 0.7 percent.

Euro Area Inflation Rate Confirmed at -0.2%

Eurostat | Joana Taborda |
3/17/2016 10:30:04 AM