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February 2016

Eurozone inflation numbers update

Published: Monday 29 February 2016

The Eurozone inflation numbers missed expectations increasing speculation that the European Central Bank may be forced to increase their stimulus measures. The consumer price index year on year for February was -0.2% instead of the 0% anticipated. Earlier, ECB governing council member Francois Villeroy de Galhau had warned that the danger faced by Europe is deflation. Noting that oil and raw material prices are the driving factors for low inflation, and that if the low prices have sustainable long-term effects, the ECB will have to act. This is looking increasingly likely, but we will have to wait until March to see. The Euro has been sold on the back of the news and is currently giving buyers of Euro a brief opportunity.