Eurozone prices, jobs firm but deflation threat remains

Brussels

THE euro zone's consumer price downturn eased and jobless figures picked up slightly on Monday but the modest improvements were not enough to dispell all fears of a deflationary spiral.

Analysts said that the figures were welcome although the European Central Bank will still have to pull out all the stops to prevent the economy stalling as oil prices continue to fall sharply, stoking the deflation threat.

Consumer prices in the 19-nation euro zone were down 0.3 per cent in February, less than the drop of 0.6 per cent in January when tumbl…