Euro zone inflation plunge may vindicate cautious Draghi

[OhSusana]

Euro zone inflation plunge may vindicate cautious Draghi
http://www.nasdaq.com/article/euro-zone ... 0331-00241

...BRUSSELS, March 31 (Reuters) - Euro zone inflation plunged this month, likely vindicating European Central Bank President Mario Draghi's cautious policy stance and proving that the bloc may still be years away from a sustained rise in consumer prices. Inflation in the 19-member currency union fell to 1.5 percent in March from a four-year high of 2.0 percent in February, well below expectations for 1.8 percent as energy, food and services prices rose slower than last month, Eurostat said. Underlying inflation, a measure closely watched by the ECB, meanwhile fell to 0.7 percent from 0.9 percent, all but erasing pressure on Draghi to tighten the ECB's money taps soon, many months before its currency guidance....

Good news for those living in the Eurozone - including Cyprus, of course!
Bad news if you're selling a house there! Obviously the euro fell on this news. Less pressure for an interest rate rise - unlike the UK - with rising inflation.

[Royal]

Not good news at all for the Eurozone.

Actually, it will probably mean more Quantitive Easing (QE) from the ECB which will lower the value of the Euro. It will be good news for Sterling to Euro exchange rates though...