French Inflation Falls into Negative Territory

Inflation in France, the eurozone’s second-biggest economy, turned negative in January, adding to worries over deflation in the eurozone.

Prices fell 0.4% from a year earlier, with energy costs down 7.1% following the drop in global oil prices.

It is the first time in more than five years that inflation in France has turned negative.

Last month, the European Central Bank announced a stimulus programme to try to boost growth and avoid deflation.

Figures released last month suggested deflation in the eurozone was gathering pace, with prices across the currency bloc in January down 0.6% from a year earlier.

The ECB aims to keep inflation near to, but below 2%.

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