Eurozone inflation down as ECB readies virus response

Eurozone inflation fell to 1.2 per cent in February, official data showed yesterday, as the European Central Bank said it was preparing to respond to the economic impact of the coronavirus.

The drop from 1.4 per cent in January means the rate is even further from the ECB’s target of just under two per cent, though it was in line with the forecasts of analysts surveyed by financial services provider Factset.

The fast spreading coronavirus outbreak has roiled financial markets and disrupted international travel and supply chains, prompting ECB chief Christine Lagarde to announce the bank was ready to take measures to lessen the economic impact.

The ECB holds its next board meeting on March 12 but with unprecedented stimulus measures already in place there are doubts there is much more the bank can do to drive up stubbornly low inflation.

The single currency zone’s underlying inflation rate — which strips out energy, food, alcohol and tobacco — stood at 1.2 per cent in February.

 

Eurozone inflation down as ECB readies virus response

Eurozone inflation fell to 1.2 per cent in February, official data showed yesterday, as the European Central Bank said it was preparing to respond to the economic impact of the coronavirus. The drop from 1.4 per cent in January means the rate is even further from the ECBs target of just under two per cent, though it was in line with the forecasts of analysts surveyed by financial services provider Factset. The fast spreading coronavirus outbreak has roiled financial markets and disrupted international travel and supply chains, prompting ECB chief Christine Lagarde to announce the bank was ready to take measures to lessen the economic impact. The ECB holds its next board meeting on March 12 but with unprecedented stimulus measures already in place there are doubts there is much more the bank can do to drive up stubbornly low inflation. The single currency zones underlying inflation rate which strips out energy, food, alcohol and tobacco stood at 1.2 per cent in February.