advertisement

Inflation in Europe sags amid outbreak, oil price decline

FRANKFURT, Germany (AP) - Inflation in the 19 countries that use the euro currency sagged to 0.7% in March from 1.2% February as the virus outbreak and an oil price war between Saudi Arabia and Russia rippled through the economy.

A key factor in the officials figures published Tuesday was volatile energy prices, which plunged 4.3% from the previous month.

A decline in oil prices since the start of the year has been accelerated by Saudi Arabia's decision to increase production and preserve market share after Russia balked at joining in common cuts among members of the OPEC oil cartel and allied producing countries.

The virus outbreak has led to a wide-ranging decline in economic activity as a wave of business closures and social distancing measures swept over Europe.

Article Comments
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the "flag" link in the lower-right corner of the comment box. To find our more, read our FAQ.