Inflation in the euro zone slumped to a record low in March of 0.6%, the European Union's Eurostat data agency said today, confirming a previous estimate.
The fall brought 12-month euro zone inflation to the lowest point on records going back to 1996 and was down sharply from the 1.2% that Eurostat recorded in February.
After hitting a record high of 4% last June and July, euro zone 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% in March from 1.7% in February, Eurostat said.
In the 27-nation European Union inflation was also lower, although by not as much. It fell to 1.3% in March from 1.8% in February.
Meanwhile, industrial production in the euro zone fell 2.3% in February on a monthly basis, bringing the drop over 12 months to a record 18.4%, Eurostat said.
With the euro zone mired in recession, the industrial slump showed no sign of letting up in February after factory and refinery output fell in January 2.4% over one month and 16% over one year.
Economists had forecast that output fell 2.3% in February over one month and 17.5% over one year.
The February drop was driven by a 4.3% slump in the production of durable goods such as cars, followed by a 3% drop in capital goods such as machinery used to make other products.
In the 27-nation European Union, industrial production fell 1.9% in February, bringing the fall over 12 months to 18.4%.
