Eurozone inflation fall to 0.7% in February

Eurozone inflation fall to 0.7% in February

PanARMENIAN.Net - Inflation in the euro area fell to 0.7% in February, down from 0.8% in January, revised figures have shown, according to BBC News.

The Eurostat estimate puts the inflation rate well below the European Central Bank target of just below 2%. The lower rate may reinforce concerns that the 18-nation eurozone risks a damaging period of deflation.

However, the European Central Bank (ECB) is confident that eurozone economies are recovering from recession.

Euro-area inflation started to fall from 3% at the end of 2011 and passed below the 2% mark at the beginning of 2013.

Deflation, or falling prices, can encourage businesses and consumers to delay spending and wait for possible bargains, inhibiting economic growth.

The ECB expects inflation to gradually increase to 1% in 2014, before reaching its target 2% in 2016.

Earlier this month, the ECB forecasted a gradual increase in economic growth in the eurozone to 1.8% in 2016.

Related links:
 Top stories
According to Gagik Beglaryan, the Chinese side put forward a number of proposals on the implementation of the railway construction project.
ContourGlobal expects the modernization to create 150 near-term jobs in addition to the 150 long-term technicians employed.
The President declared that we will cover only the population's expenses, meaning people who spend 250 kW of electricity per month.
The proposed additional financing will raise the total length of roads to 360 km, 73 km of which have already been rehabilitated.
Partner news