The Eurozone’s annual inflation rate continued its downward trajectory, reaching 2.2% in March, down from February’s 2.3%. This latest figure, released Tuesday by the European statistical office Eurostat, aligns perfectly with Reuters analysts’ expectations.
In a detailed breakdown, energy prices showed a welcome decline of 0.7%, while service costs, though still elevated at 3.4%, demonstrated a notable improvement from February’s 3.7%. Food prices, however, saw an uptick, rising to 2.9%, primarily driven by a 4.1% increase in unprocessed food items.
The closely monitored core inflation index, which excludes volatile food and energy prices, dropped to 2.4% from February’s 2.6%, surpassing analysts’ expectations of 2.5%.
All signs point to an imminent interest rate cut by the European Central Bank at its April 17 meeting. The ECB, having already implemented six rate cuts since last June, appears increasingly confident in its approach as the economy remains stagnant and the euro shows strength.
The complete inflation report, including data for the entire European Union, is scheduled for release on April 16.