Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Cheaper gas, food curb Feb euro zone inflation y/y

Published 03/16/2010, 06:03 AM
Updated 03/16/2010, 06:08 AM

BRUSSELS, March 16 (Reuters) - Lower prices of gas, food and clothes limited euro zone inflation in year-on-year terms in February despite more expensive fuel for cars and tobacco, the European Union's statistics office said on Tuesday.

Eurostat confirmed its earlier estimate that consumer prices in the 16 countries using the euro rose 0.9 percent year-on-year last month, after a 1.0 percent increase in January, as expected by economists polled by Reuters.

Month-on-month prices grew by 0.3 percent, in line with expectations, driven mainly by more expensive package holidays and clothes, while fuel and food had the biggest downward impact.

The European Central Bank wants to keep inflation below, but close to, 2 percent year-on-year over the medium term.

It left interest rates unchanged at record lows of 1 percent at the start of March as inflationary pressures in the economy, which is slowly recovering from its deepest recession since World War Two, are very low.

Core inflation, which excludes volatile unprocessed food and energy prices and is an indication of inflationary pressures, slowed to 0.8 percent year-on-year from 0.9 percent in January after a 0.3 percent monthly rise.

Economists expect the ECB will not start raising interest rates until early 2011. (Reporting by Jan Strupczewski, editing by Timothy Heritage)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.