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Eurozone inflation turns negative in February

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Eurozone inflation is likely to have shifted into negative territory in February, driven by falling energy prices, the official European Union statistical office says.

Euro area annual inflation is expected to be -0.2 per cent in February, down from 0.3 per cent, Eurostat estimates.

Energy prices are likely to dip 8 per cent year-on-year, down from a 5.4 per cent price fall the previous month.

Services are expected to have the highest annual inflation rate in February (1 per cent versus 1.2 per cent in January), followed by food, alcohol and tobacco (0.7 per cent versus 1 per cent in January) and non-energy industrial goods (0.3 per cent versus 0.7 per cent in January).

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