Eurozone deflation decreased in February
Eurozone deflation decreased in February 2015, after the 19 countries expected launch of the quantitative easing program of the European Central Bank (ECB) and this had an impact on the index. The prices in the Eurozone fell by 0.3% yoy in February, according to preliminary calculations of the statistical agency Eurostat. This is above expectations […]
Eurozone deflation decreased in February 2015, after the 19 countries expected launch of the quantitative easing program of the European Central Bank (ECB) and this had an impact on the index. The prices in the Eurozone fell by 0.3% yoy in February, according to preliminary calculations of the statistical agency Eurostat. This is above expectations for a decline of 0.4%. In December deflation returned in the Eurozone for the first time since 2009 and the prices fell by 0.2% yoy. In January, the decline was 0.6% yoy.
The data come the day on which the ECB is preparing to launch a program to buy government bonds worth 1 trillion EUR in an attempt to boost the economy of the Eurozone. On Monday, a spokesman for the ECB told, that there is not clear start date, but the program is expected to begin in March.
Although the decline in prices was largely due to the fall in world oil prices, which in turn reduces the cost of fuel, though there have been fears of so-called. deflationary spiral. In this situation, falling prices cause consumers to delay spending in anticipation of future further decline in prices, which some economists might harm the recovery of the Eurozone. Separately, Eurostat survey, also released on Monday showed that unemployment in the Eurozone fell to 11.2% in January to 11.4% in December.
The good news is added and the final production index PMI, which reached 51.0 points in February, unchanged from January. The value above 50 indicates growth in the sector.
