The eurozone’s drooping economy has brought the area back into deflation.
Prices fell by 0.2% in the year to February, according to a flash estimate from Eurostat.
The news took analysts by surprise as they had predicted prices would hold steady.
Downward pressure came from a falling oil and gas prices as well as the recent appreciation of the euro.
The unwelcome news is likely to put fresh pressure on the European Central Bank to increase its stimulus programme.
The ECB is already buying assets worth €60 billion, hoping to boost lending, growth and prices but it has acknowledged that its inflation forecasts would have to be cut and its policies reviewed in March given that inflation will not return to target for several more years
The Bank’s inflation target is just under 2%, but it has not been near this goal in the last three years. It has forecast inflation in 2016 to be 1%, but may cut this expectation to 0.5%.
Its March meeting may result in further interest rate cuts – the Bank’s main interest rate is already negative at -0.3%.
