Eurozone inflation eases back on lower energy costs

 Inflation across 19-country eurozone slipped back in February largely as a result of lower energy prices, official figures showed Tuesday.

Statistics ncy Eurostat said consumer prices were 1.2% higher in year to February, down from 1.4% rate in previous month. decline was in line with market expectations.

Energy prices weighed on inflation, falling by 0.3% over year. Oil prices, in particular, have been hit hard by mounting concerns over ecomic impact of coronavirus outbreak, with traders fretting over hit to global demand. Energy prices have fallen furr since Eurostat compiled February inflation data.

Stripping out volatile items, including energy but also food, alcohol and tobacco, so-called core rate of inflation actually edged up in month to 1.2% from 1.1%.

Both rates remain below European Central Bank's goal of just below 2%.

However, any forthcoming action by central bank to stimulate eurozone ecomy and get inflation back towards target is less likely to be based on current inflation figures than on virus' ecomic impact.

“With coronavirus disruption furr denting our already subdued expectations for eurozone ecomic prospects, price pressures are expected to remain suppressed over coming quarters,” said Luka Raznatovic, eurozone ecomist at Oxford Ecomics.

Elsewhere, Eurostat found that unemployment across bloc held steady at 7.4%.