EZ Deflation Eases Further as QE Takes Footing

Deflation in the euro zone eased in March, according to official data published Tuesday, prompting hopes that the region’s trillion-euro stimulus program was taking effect.

Prices fell 0.1 percent year-on-year in March, according to flash estimates released by Eurostat, in line with forecasts. It comes after a 0.3 percent decline in prices in February.

Deflation took hold in the euro zone for the first time since 2009 in December, as prices slipped 0.2 percent year-on-year. Things got worse in January, when data revealed that prices had fallen 0.6 percent on an annual basis.