Photo courtesy of Metropolico.org.
The Eurozone fell into deflation again today, according to early data from Eurostat, the official statistical agency of the European Union.
All consumer prices in the eurozone fell 0.2% on an annual basis. Last month, the reading was positive, if very near to zero, at 0.3%.
The key downward driver of all prices was falling energy prices, which dropped by 8% on an annual basis in February. Energy prices had just fallen 5.4% in January.
Energy accounts for approximately 10% of all prices in the eurozone.
Core inflation has fallen below January’s 1% number to 0.8%.
A look at a chart of historical price data inside the eurozone shows that euro area dipped into deflation after 2008 crisis, recovered in 2010, and then began to fall again in 2012. A look at the source data show five months with negative prints for all prices in 2015.
Chart source: European Central Bank
February’s early negative print is the first time all prices within the eurozone have gone negative since September of 2015.