Spanish deflation eases in February

Spanish deflation eases in February

Deflation in Spain appears to have improved in February, with a flash estimate of the consumer price index standing at -1.1 per cent.

Although still negative, the Instituto Nacional de Estadistica notes this is two-tenths higher than the -1.3 per cent recorded in January, with the statistics office explaining the move on the price of fuel.

Meanwhile in France latest figures showed household consumption increased 0.6 per cent in January, building on the 1.6 per cent increase recorded in December 2014. The French National Institute of Statistics and Economic Studies noted the rise had resulted mainly from purchases of cars, and spending on gas and electricity, although it added that heating and fuel consumption had declined.

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Following the release of the economic data European markets started the day on a positive note with the French Cac 40 index moving 0.13 per cent higher, while Germany’s Dax added 0.02 per cent in early trading.