Inflation decreased by 0.5pp to -0.2% YoY in February, due to the intensification of falling energy prices and also the moderation in core inflation (-0,2pp) to 0.8% YoY. Recent developments in oil prices suggest that the negative annual rates could intensify in the coming months

National accounts have again provided a weak growth figure in the fourth quarter of 2015 (0.2% QoQ) and the latest activity data have not been positive. For 2016, we are not changing our growth forecast of 1.3% while we see high risks of non-compliance with the deficit target.