Germany’s annual consumer price index was down to zero in February following an increase of o.5% in January, Destatis, the German statistics office, said in its flash report. On a monthly basis, prices rose 0.4%.
Meanwhile, economists had expected a 0.1% rise annually and a 0.5% increase month-on-month.
The European Union’s Harmonized Index of Consumer Prices (HICP) increased 0.4% from January and dropped 0.2% year-on-year. Analysts had anticipated growth for both indicators.
The ECB said inflation could be negative for some months due to low oil prices. Low inflation rate could weigh on wages that may trigger deflation.
France’s HICP slid 0.1% in February, defying economists' expectations for a 0.1% rise. In Spain, the EU measure of inflation plunged 0.9% versus an expected fall of 0.6%.
Flash eurozone HICP data will come out on Monday. A slowdown to zero is expected in the region compared to a 0.3% rise in January.
The inflation rate in the eurozone has been below the ECB's 2% target for two years.
