Fall in Euro zone inflation puts pressure on ECB

      The steep fall in the inflation of the euro zone in March has put the pressure on the ECB to intervene. The inflation rate was 0.7% in February which fell down to 0.5% in March, as reported by the European Union's statistics office Eurostat. 

      While the prices lowered for heating oil, telecommunications and fuel, tobacco, restaurants and bars as well as milk, cheese and eggs saw an increase in prices. 

      ECB policy makers stated that they are ready to deploy unconventional measures to curb the fall of inflation for longer period.

       With the euro strengthening against the dollar, the imports become cheaper and decreases the price of goods and services in Europe. Even though in the short run this will provide more purchasing power for households, the ECB should intervene and curb the fall in inflation expectations