Eurozone inflation hits record low of 0.6%: EU

BRUSSELS: Inflation in the 16 countries using the euro slumped to a record low in March of 0.6 per cent, the European Union's Eurostat data agency said Thursday, confirming a previous estimate.

The fall brought 12-month eurozone inflation to the lowest point on records going back to 1996 and was down sharply from the 1.2 per cent that Eurostat booked in February.

After hitting a record high of 4.0 per cent last June and July, eurozone inflation has fallen sharply as oil and other commodity prices have collapsed in the face of a deep economic downturn.

Excluding volatile energy, food, alcohol and tobacco prices, underlying inflation also eased, falling to 1.5 per cent in March from 1.7 per cent in February, Eurostat said

In the 27-nation European Union inflation was also lower, although by not as much, falling to 1.3 per cent in March from 1.8 per cent in February.