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Euro zone CPI unexpectedly slows to 0.7% in February

Published 03/17/2014, 06:04 AM
Euro zone inflation rate slows to 0.7% in February
EUR/USD
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Investing.com - Consumer price inflation in the euro zone rose less than initially estimated in February, underlining concerns over the threat of deflation in the region, official data showed on Monday.

In a report, Eurostat said consumer price inflation rose by a seasonally adjusted 0.7% last month, down from a preliminary estimate of 0.8%. Euro zone inflation rose by 0.8% in January.

The rate remains firmly below the European Central Bank's target of near but just below 2%.

Month-over-month, consumer prices inched up 0.3% last month, below expectations for a gain of 0.4% and following a decline of 1.1% in January.

Core CPI, which excludes food, energy, alcohol, and tobacco costs rose by a seasonally adjusted 1% in February, unchanged from an initial estimate and unchanged from January.

Following the release of the data, the euro added to losses against the U.S. dollar, with EUR/USD shedding 0.17% to trade at 1.3891, compared to 1.3899 ahead of the data.

Meanwhile, European stock markets remained higher. The EURO STOXX 50 rose 0.85%, France’s CAC 40 added 0.75%, London’s FTSE 100 picked up 0.5%, while Germany's DAX gained 0.65%.

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