The inflation in the Eurozone in February was unchanged according to the expression studies of Eurostat. The calculated inflation in the monetary union was 0.8% yoy. The analysis of the main components of the index show that in the expiring month the energy prices significantly decreased with 2.2% compared to January 2014. According to the published data, the prices fell in this group deepened after the first month of the year, as the energy resources dropped by 1.2%.
The growth of the food prices, alcoholic beverages and tobacco products is also restricted. In February the prices of the group grew with 1.5%, while in January the growth was 1.7% In the same time the services sector grew with accelerated pace from 1.3%, compared to 1.2% in January.
These data are preliminary, specify Eurostat. The final analysis, as well as information about the inflation across the EU will be published in the middle of the next month. The inflation rate in the European Union is well below the limit of 2% set by the European Central Bank (ECB). The decline in prices is a serious problem for the continent and many analysts warn of the danger of falling into deflation.
The news about inflation decreased the pressure over the European Central Bank to take further actions to support the financial system and economic growth at its meeting on Thursday. The ECB will hold its next monetary policy meeting next Thursday, and today’s inflation data reduce the possibility for immediate action on its part to have to convince financial markets, households and businesses that the central bank is aware of the threat of deflation. After the data for inflation the pair EUR/USD jumped with 0.7% to 1.3807 and reached new highs after the yesterday’s decrease.