Eurozone Inflation Eases As Estimated

(RTTNews) - Eurozone inflation slowed in March, as initially estimated, as energy prices declined for the first time in four months and services inflation softened for the third straight month.

The harmonized index of consumer prices climbed 2.2 percent on a yearly basis in March, slightly slower than the 2.3 percent rise in February, final data from Eurostat showed on Wednesday. The rate came in line with the flash estimate released on April 1.

Core inflation that excludes prices of food, alcohol and tobacco, weakened to 2.4 percent, in line with the estimate, from 2.6 percent in the previous month.

On a monthly basis, the HICP was up 0.6 percent in March as estimated initially. The highest contribution to the annual inflation rate came from services, while energy prices decreased for the first time in four months.

Services inflation came in at 3.5 percent, but it was slower than the 3.7 percent rise in February. The increase in food, alcohol and tobacco prices rose to 2.9 percent from 2.7 percent.

At the same time, annual growth in non-energy industrial goods held steady at 0.6 percent. Meanwhile, energy prices dropped 1.0 percent, in contrast to the 0.2 percent rise in the previous month.

In March, the European Central Bank had cut interest rates for a fifth policy session in a row and lowered the deposit rate by 25 basis points to 2.5 percent, which is its lowest level since February 2023. The bank had signaled a pause in the easing cycle as policy was deemed less restrictive.