By Daniel Hunter

Deflation in the eurozone eased and unemployment fell in February, according to Eurostat.

The EU's official statistics agency said that consumer prices fell by 0.1% in March, compared with a 0.3% drop in January.

Meanwhile the unemployment rate fell from 11.4% to 11.3%. 329,000 people left unemployment in the three months to February, the biggest number since April 2007.

These are the latest such figures since the European Central Bank (ECB) embarked on its €1 trillion quantitative easing programme.

Jonathan Loynes, chief European economist at Capital Economics, said: "The latest data on eurozone inflation and unemployment do little to diminish the danger of a prolonged period of deflation in the currency union.

"The increase was driven entirely by higher food and energy inflation, no doubt partly reflecting the drop in the euro during the month."