Euro Area Stays in Deflation for 2nd Month
Consumer prices in the Euro Area edged down 0.1 percent year-on-year in March of 2016, following a 0.2 percent drop in the previous month and in line with market expectations, according to preliminary estimates. The inflation rate remained in negative territory for the second month in a row, as energy prices fell.
3/31/2016 11:03:10 AM
Looking at the main components of euro area inflation, services is expected to have the highest annual rate in March (1.3 percent, compared with 0.9 percent in February), followed by food, alcohol and tobacco (0.7 percent, compared with 0.6 percent in February), non-energy industrial goods (0.5 percent compared with 0.7 percent in February) and energy (-8.7 percent, compared with -8.1 percent in February).
Core inflation rate, which excludes prices of energy, food, alcohol and tobacco accelerated to 1.0 percent compared to 0.8 percent in the previous month.