Euro zone inflation plunged this month on crashing oil prices, signalling the start of a possible deflationary spiral as government lockdowns in response to the coronavirus trigger a dramatic slowdown in economic activity.
Ciara Lee reports
Euro zone starts slide down inflation slope as coronavirus lockdowns weigh
Crashing oil prices and economic activity grinding to a halt led to a plunge in euro zone inflation in March.
As governments imposed drastic lockdowns price rises in the 19 countries sharing the euro slowed to 0.7% from 1.2% in February.
But the headline figure, which many economists expect to slip into negative territory before the middle of the year, is also masking opposing trends which may worry households.
They include sharply higher food prices.
With Brent crude down by two-thirds since the start of the year on a price war between Russia and Saudi Arabia, energy costs fell more than 4% on the year.
But food price inflation accelerated to 3.5% from 2.6%, extending a rise that may be aggravated by lockdown measures.
The UN has warned that restrictions could make it difficult for seasonal workers to move around and for finished products to be shipped, putting upward pressure on food prices.
While the ECB normally looks past fluctuations caused by energy price swings, the current crisis is unlike any it has faced.
Hoping to help, it has already approved emergency measures including up to $1.21 trillion worth of debt purchases this year, all in the hope of containing borrowing costs for businesses and governments.