Thursday, February 19, 2015

French Inflation Falls into Negative Territory

Inflation in France, the eurozone’s second-biggest economy, turned negative in January, adding to worries over deflation in the eurozone.

Prices fell 0.4% from a year earlier, with energy costs down 7.1% following the drop in global oil prices.

It is the first time in more than five years that inflation in France has turned negative.

Last month, the European Central Bank announced a stimulus programme to try to boost growth and avoid deflation.

Figures released last month suggested deflation in the eurozone was gathering pace, with prices across the currency bloc in January down 0.6% from a year earlier.

The ECB aims to keep inflation near to, but below 2%.

via BBC

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