Euro Zone Inflation Falls to 0.5 Percent Puts Pressure on ECB

Inflation in the euro area fell to 0.5% in March, down from 0.7% in February and its lowest rate since November 2009.

The Eurostat estimate puts the inflation rate well below the European Central Bank target of just below 2%.

The figure is lower than the 0.6% rate expected by analysts.

The lower-than-expected rate may reinforce concerns that the 18-nation eurozone risks a damaging period of deflation.

Eurostat’s March’s figure is a “flash” or initial estimate, meaning it could be revised later.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza