Eurozone inflation remained stable in February as coronavirus restrictions weighed on the region’s economy ahead of an expected spike in consumer prices in the coming months.
Prices in the 19 countries sharing the euro rose 0.9 per cent compared to a year earlier, stable compared to January, according to a flash estimate from Eurostat, the European Union's statistics office.
January's 0.9 per cent rate marked a big leap after several months of negative inflation due to falling consumer demand caused by the Covid-19 crisis and the restrictions put in place across Europe to address it.
Sam Miley from Oxford Economics said there is scope for eurozone inflation to increase further in the coming months, with pressure coming from energy prices which fell considerably in 2020.
“As such, any annual comparisons will be subject to an extremely low comparative base. Despite the impact on households’ bottom line, the potential upward trend in headline inflation is unlikely to move policymakers at the European Central Bank, who are more focused on the core inflation measure,” Mr Miley said.
Food prices saw the fastest year-on-year growth in February of 1.4 per cent, while energy prices were down just 1.7 per cent, following annual contractions of 8.3 per cent, 6.9 per cent and 4.2 per cent in November, December and January, respectively.
“This smaller contraction means that energy prices provided less of a drag on inflation, putting some upward pressure on the change in the inflation rate,” said Mr Miley
Last week, Bank of England chief economist Andy Haldane warned central bankers around the world to keep an eye on prices as he compared inflation to a "tiger" that has been woken up and could prove difficult to tame.
He said a post-lockdown surge in demand could put pressure on coronavirus-hit economies and said central banks should be cautious about “acting too conservatively by tightening policy prematurely”.
“The greater risk at present is of central bank complacency allowing the inflationary [big] cat out of the bag,” he said.
While the ECB will generally welcome the return of faster inflation, it has also pledged to ignore short-term spikes this year as it continues to support the economy with a wave of liquidity.
In January, ECB president Christine Lagarde held the pandemic bond-buying programme at €1.85 trillion ($2.26tn), following a €500bn boost in December, and reiterated that it will run until March 2022 at the earliest.
Jack Allen-Reynolds, senior Europe economist at Capital Economics, expects the eurozone's headline inflation rate to exceed 2 per cent in the second half of the year.
But rather than be concerned about this and respond by paring back its stimulus measures, Mr Allen-Reynolds expects the ECB “to look through this, as inflation is likely to fall next year”.
“Supply problems should be resolved, holiday and clothing prices should have largely recovered to pre-crisis levels, and energy inflation will fall,” he said.
“Meanwhile, the hit from the pandemic to employment, incomes and confidence should mean that aggregate demand remains weak. So the ECB will keep policy loose to support the recovery.
Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
Sheer grandeur
The Owo building is 14 storeys high, seven of which are below ground, with the 30,000 square feet of amenities located subterranean, including a 16-seat private cinema, seven lounges, a gym, games room, treatment suites and bicycle storage.
A clear distinction between the residences and the Raffles hotel with the amenities operated separately.
RESULT
Huddersfield Town 1 Manchester City 2
Huddersfield: Otamendi (45' 1 og), van La Parra (red card 90' 6)
Man City: Agüero (47' pen), Sterling (84')
Man of the match: Christopher Schindler (Huddersfield Town)
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
Killing of Qassem Suleimani
MORE ON CORONAVIRUS & THE ECONOMY
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A new relationship with the old country
Treaty of Friendship between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates
The United kingdom of Great Britain and Northern Ireland and the United Arab Emirates; Considering that the United Arab Emirates has assumed full responsibility as a sovereign and independent State; Determined that the long-standing and traditional relations of close friendship and cooperation between their peoples shall continue; Desiring to give expression to this intention in the form of a Treaty Friendship; Have agreed as follows:
ARTICLE 1 The relations between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates shall be governed by a spirit of close friendship. In recognition of this, the Contracting Parties, conscious of their common interest in the peace and stability of the region, shall: (a) consult together on matters of mutual concern in time of need; (b) settle all their disputes by peaceful means in conformity with the provisions of the Charter of the United Nations.
ARTICLE 2 The Contracting Parties shall encourage education, scientific and cultural cooperation between the two States in accordance with arrangements to be agreed. Such arrangements shall cover among other things: (a) the promotion of mutual understanding of their respective cultures, civilisations and languages, the promotion of contacts among professional bodies, universities and cultural institutions; (c) the encouragement of technical, scientific and cultural exchanges.
ARTICLE 3 The Contracting Parties shall maintain the close relationship already existing between them in the field of trade and commerce. Representatives of the Contracting Parties shall meet from time to time to consider means by which such relations can be further developed and strengthened, including the possibility of concluding treaties or agreements on matters of mutual concern.
ARTICLE 4 This Treaty shall enter into force on today’s date and shall remain in force for a period of ten years. Unless twelve months before the expiry of the said period of ten years either Contracting Party shall have given notice to the other of its intention to terminate the Treaty, this Treaty shall remain in force thereafter until the expiry of twelve months from the date on which notice of such intention is given.
IN WITNESS WHEREOF the undersigned have signed this Treaty.
DONE in duplicate at Dubai the second day of December 1971AD, corresponding to the fifteenth day of Shawwal 1391H, in the English and Arabic languages, both texts being equally authoritative.
Signed
Geoffrey Arthur Sheikh Zayed
THE DETAILS
Director: Milan Jhaveri
Producer: Emmay Entertainment and T-Series
Cast: John Abraham, Manoj Bajpayee
Rating: 2/5
THE BIO
Bio Box
Role Model: Sheikh Zayed, God bless his soul
Favorite book: Zayed Biography of the leader
Favorite quote: To be or not to be, that is the question, from William Shakespeare's Hamlet
Favorite food: seafood
Favorite place to travel: Lebanon
Favorite movie: Braveheart
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Top goalscorers in Europe
34 goals - Robert Lewandowski (68 points)
34 - Ciro Immobile (68)
31 - Cristiano Ronaldo (62)
28 - Timo Werner (56)
25 - Lionel Messi (50)
*29 - Erling Haaland (50)
23 - Romelu Lukaku (46)
23 - Jamie Vardy (46)
*NOTE: Haaland's goals for Salzburg count for 1.5 points per goal. Goals for Dortmund count for two points per goal.
Reading List
Practitioners of mindful eating recommend the following books to get you started:
Savor: Mindful Eating, Mindful Life by Thich Nhat Hanh and Dr Lilian Cheung
How to Eat by Thich Nhat Hanh
The Mindful Diet by Dr Ruth Wolever
Mindful Eating by Dr Jan Bays
How to Raise a Mindful Eaterby Maryann Jacobsen
The years Ramadan fell in May
