Euro area annual inflation down to -0.2%

Euro area annual inflation returned to negative territory in February 2016, according to a flash estimate from Eurostat, published today.

Consumer prices decreased by 0.2% after rising 0.3% in January against the analysts’s expectations of  zero change.

Prices in the services sector are slowing the upward trend by 1% compared to 1.2% in January, Food, alcohol and tobacco products reported an increase of 0.7% compared to 1% the previous month, while non-energy industrial goods were up by 0.3% compared to 0.7% in January. Energy accelerated depreciation from 5.4% to 8%.

Today's report reinforces expectations that the European Central Bank will take aggressively increasing incentives at its next meeting, scheduled for March 10.