Europe’s deflation pressure eases before first round of quantitative easing
Spending on oil products down by 7.9% in February compared with 9.3% in January
Lower energy prices are still fuelling Europe’s deflation, with spending on oil products down by 7.9% compared with 9.3% in January.
Latest figures from Eurostat (Europe's statistics body) show prices fell 0.3% compared with February 2014
But the downward trend has moderated compared with January, when prices fell 0.6% year-on-year.
The eurozone officially fell into deflation in December last year for the first time in half a decade.
The unemployment rate continues to cast a long shadow over the continent, with the official numbers sitting at 11.2% – twice as high as New Zealand’s.
Despite this daunting figure, it is actually the lowest number seen since early 2012.
Eurostat estimates more than 18 million people in the eurozone were unemployed in January, decreasing by 140,000 since December and by almost 900,000 year-on-year in January.
These figures come as the European Central Bank (ECB) prepares to embark on a trillion euro quantitative easing programme in early March.
The injection of large amounts of capital into the economy – coupled with low interest rates – aims to help restore Europe’s fractured economy.
The ECB’s low interest rates have driven down the value of the currency. Last week it reached a decade-long low against the greenback.
Jason Walls
Tue, 03 Mar 2015
Tue, 03 Mar 2015
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Europe’s deflation pressure eases before first round of quantitative easing
45674