Record Low Euro Inflation in March - Eurostat

Euro area annual inflation reached its lowest level since 2009 in March 2014, according to an estimate from Eurostat, the statistical office of the European Union.

The latest data reveals a 0.5% inflation in March 2014, down by 0.7% in February, which is the lowest annual rate of inflation since November 2009.

Energy prices fell 2.1% in March after a 2.3% decline in February, Eurostat's report showed. Prices of alcohol, food and tobacco climbed 1% after a 1.5% rise in February and the cost of services rose 1.1% after a 1.3% increase.

According to economists, the low inflation is partly due to temporary factors, but the volatility of the index suggests that the European Central Bank (ECB) may have no choice but to take political measures for stabilization, BGNES reports.

The inflation data released Monday are estimates, and Eurostat will release final figures for March on 16 April.

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