European Deflation Eases as Prices Beat Expectations

Deflation eased in the euro zone in February, according to official data Monday, as the 19-country region awaits the European Central Bank’s (ECB) quantitative easing (QE) program.

Prices fell 0.3 percent year-on-year in February, flash estimates from Europe’s statistics agency Eurostat showed, above forecasts of a decline to minus 0.4 percent.

Deflation hit the euro zone for the first time since 2009 in December, as prices fell 0.2 percent year-on-year. In January, data showed prices had fallen 0.6 percent on an annual basis.

The data come as the ECB prepares to launch a 1 trillion euro ($1.1 trillion) quantitative easing program in an effort to boost the euro zone economy. An ECB spokesman told CNBC Monday that there was no formal start date, but the program was expected to start sometime in March.

via CNBC

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