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European Deflation Eases as Prices Beat Expectations

Deflation eased in the euro zone in February, according to official data Monday, as the 19-country region awaits the European Central Bank’s (ECB) quantitative easing (QE) program.

Prices fell 0.3 percent year-on-year in February, flash estimates from Europe’s statistics agency Eurostat showed, above forecasts of a decline to minus 0.4 percent.

Deflation hit the euro zone for the first time since 2009 in December, as prices fell 0.2 percent year-on-year. In January, data showed prices had fallen 0.6 percent on an annual basis.

The data come as the ECB prepares to launch a 1 trillion euro ($1.1 trillion) quantitative easing program in an effort to boost the euro zone economy. An ECB spokesman told CNBC Monday that there was no formal start date, but the program was expected to start sometime in March.

via CNBC [1]

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Alfonso Esparza

Alfonso Esparza [6]

Senior Currency Analyst at Market Pulse [7]
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
Alfonso Esparza

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