Eurozone inflation rose to -0.1 per cent in March

Jessica Morris
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The Eurozone economy is fighting its way out of deflation (Source: Getty)

Data released today showed the Eurozone is fighting tooth and nail to claw its way out of deflation, as prices rose for the second month straight, easing fears it could enter into a prolonged period of price falls.

The single currency area's annual inflation rate rose to -0.1 per cent in March, up from -0.3 per cent a month earlier, according to its official statistics agency. This was in line with analysts' expectations.

This was driven by restaurants and caf├ęs, where prices rose 0.1 percentage points, rents, which rose 0.09 percentage points and tobacco, which was up up 0.07 percentage points.

Meanwhile, fuels and transport continued to fall, dropping 0.44 percentage points, while heating oil fell 0.16 percentage points and the price of telecommunications edged down by 0.06 percentage points.

The European Central Bank recently unleashed an unprecedented US-style bond-buying programme in a bid to evade a deflationary spiral, as well as kick start economic growth.

Governor Mario Draghi recently affirmed his commitment to the scheme.

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