BRUSSELS (Reuters) – Consumer prices in the euro zone fell less than expected in February, core inflation was stable and unemployment fell in January for the third consecutive month, showed data released Monday by the office of European statistics. Eurostat estimated that consumer prices in the 19 countries sharing the euro fell 0.3 percent year on year in February, after a decline of 0.6 percent in January and 0.2 percent in December . Economists polled by Reuters projected a decline of 0.4 percent in February. Eurostat said the much lower energy costs, which fell 7.9 percent year on year in February, and a decline of 0.2 percent in prices of non-energy industrial goods were the main factors that dragged the general index. Excluding the volatile components of energy and unprocessed food, a measure that the European Central Bank calls subyacente- inflation, prices rose 0.6 percent year on year, as in January. The ECB wants to keep inflation below but close to 2 percent over the medium term, so as to accelerate the growth of prices will start to print money this month to buy government bonds in the euro zone, a policy known as “quantitative easing”. The bank, which is expected to give more details of the plan after its policy meeting on Thursday, plans to spend 60,000 million euros (67,200 million dollars) per month in the program, mainly buying sovereign bonds, but also some assets the private sector. Until September next year will have been created over 1 billion euros through quantitative easing, the last great option ECB monetary policy to boost economic growth and combat deflation. Unemployment in the eurozone, which is usually the last indicator to react to improved economic conditions, fell for the third consecutive month to 11.2 percent of the labor force in January from 11.3 percent in December, 11.4 percent in November and 11.5 percent in October. Continued …
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