Inflation pressures in the euro zone are easing, data showed today, giving governments and central bankers more leeway for stimulus as the region's leaders seek to focus on reviving economic growth.
Modest wage growth and food price pressures drove annual euro zone inflation down to 1.8 per cent in February, its lowest level since mid-2010, the EU's statistics office said today.
The figure, which confirmed Eu rostat's flash estimate from March 1 and was as expected by economists polled by Reuters, is around the Europe an Central Bank's target of below but close to 2 per cent.
Combined with only very modest wage increases in the fourth quarter of 2012, the data highlights the weakness of the euro zone economy and will fuel expectations in some quarters that the ECB could cut interest rates this year.
Read more: Euro zone inflation at 1.8% in February - European Economic News | EU Budgets, Trends & Spending | Irish Tim - Fri, Mar 15, 2013
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