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Saturday 1 March 2014

Inflation unchanged- so looks like no ECB rate cut

Inflation is expected to be unchanged at 0.8pc this month, easing the pressure on European Central Bank boss Mario Draghi to take further action.

Economists had expected the rate to dip below 0.7pc, but the fact that it remains stable means it is less likely the ECB will reduce its main interest rate further when it meets next week.

It comes as the unemployment rate in the eurozone also remained stuck at 12pc in January.
Mr Draghi has warned of the risk of inflation getting stuck in a danger zone below 1pc, but said again on Thursday that there was clearly no deflation.


The February inflation rate was stable because lower energy costs were offset by more expensive industrial goods and services, according to Eurostat data.



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