Prices in the eurozone have remained low making March the fourth month in a row of lower prices.
But the region is in deflation giving rise to fears amongst observers that the recent trend could prove to be a downward spiral of prolonged stagnation.
The official flash estimate from Eurostat showed that inflation in March is expected to be -0.1% for the region. This was, however, up from the -0.3% reported in February.
Both figures are well below the target of close to 2% set by the European Central Bank.
Despite the slim increase, analysts were not convinced that the currency union was out of the danger zone.
The euro area first went into deflation in December. It eventually triggered a €1.1 trillion quantitative easing programme to boost the economy.
The Bank has been buying bonds since March for some €60bn per month.
Flash estimates do not include specific country information, but it was reported elsewhere that Germany has returned to inflation, thus allaying fears about the economy in the EU’s powerhouse.
Growth was recorded at 0.1% in March – slight but enough to keep the country technically out of deflation.
Economists predict that German inflation will remain weak throughout the year.
