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| Eurozone inflation falls to 0.5% in March | Eurozone inflation falls to 0.5% in March |
| (35 minutes later) | |
| Inflation in the euro area fell to 0.5% in March, down from 0.7% in February and its lowest rate since November 2009. | Inflation in the euro area fell to 0.5% in March, down from 0.7% in February and its lowest rate since November 2009. |
| The Eurostat estimate puts the inflation rate well below the European Central Bank target of just below 2%. | The Eurostat estimate puts the inflation rate well below the European Central Bank target of just below 2%. |
| The figure is lower than the 0.6% rate expected by analysts. | The figure is lower than the 0.6% rate expected by analysts. |
| The lower-than-expected rate may reinforce concerns that the 18-nation eurozone risks a damaging period of deflation. | The lower-than-expected rate may reinforce concerns that the 18-nation eurozone risks a damaging period of deflation. |
| It is the sixth consecutive month that the rate of inflation has been below 1%. | |
| And analysts believe that the sharp drop in the inflation rate could prompt the European Central Bank (ECB) to take action this Thursday. | |
| 'Unwelcome news' | |
| The central bank left interest rates on hold and took no new measures to bolster the eurozone's fragile recovery at February's meeting. | |
| However, ECB president Mario Draghi said at the time that the bank could take action should the outlook for the eurozone deteriorate. | |
| Eurostat's March's figure is a "flash" or initial estimate, meaning it could be revised later. | |
| ING economist Martin van Vliet said the lower-than-expected reading would "fuel talk of further monetary easing by the ECB". | |
| IHS Global Insight economist Howard Archer said the fall in the inflation rate was "uncomfortable and unwelcome news" for the ECB. | |
| "If the ECB does eventually act, it will probably include measures aimed at adding liquidity," he added. | |
| On Friday, figures from Spain showed that prices in the country fell 0.2% in March compared with a year earlier. |