Eurozone inflation down as ECB readies virus response

The fast spreading coronavirus outbreak has roiled financial markets and disrupted international travel and supply chains, prompting ECB chief Christine Lagarde to announce the bank was ready to take measures to lessen the economic impact.

The ECB holds its next board meeting on March 12 but with unprecedented stimulus measures already in place there are doubts there is much more the bank can do to drive up stubbornly low inflation. The single currency zone's underlying inflation rate - which strips out energy, food, alcohol and tobacco - stood at 1.2 percent in February. Unemployment in the 19-member zone was stable at 7.4 percent in January, maintaining the lowest level seen since May 2008. The lowest rates were in the Czech Republic with two percent and Poland with 2.9 percent.

As in December, the highest rates announced by Eurostat were in Greece, with 16.5 percent, and Spain with 13.7 percent.

Copyright Agence France-Presse, 2020

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