Eurozone inflation turns negative in February


Eurozone inflation is likely to have shifted into negative territory in February, driven by falling energy prices, the official European Union statistical office says.

Euro area annual inflation is expected to be -0.2 per cent in February, down from 0.3 per cent in January, Eurostat estimates.

The estimates state energy prices are likely to dip 8 per cent year-on-year, down from a 5.4 per cent price fall the previous month.

Services are expected to have the highest annual inflation rate in February at 1 per cent versus 1.2 per cent in January, followed by food, alcohol and tobacco at 0.7 per cent versus 1 per cent in January, and non-energy industrial goods at 0.3 per cent versus 0.7 per cent in January.