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Post: Eurozone inflation weakens


In the euro area, inflation fell in March. It was 6.9 percent after 8.5 percent in February, according to Eurostat.

High inflation in the Eurozone eased in March. Consumer prices rose 6.9 percent compared to the same month last year, according to a first estimate from Eurostat, the statistics office in Luxembourg. In February, the rate was 8.5 percent again. Economists had expected a less significant drop to 7.1 percent.

Core inflation at record highs

Prices rose 0.9 percent in the monthly comparison. An increase of 1.1 percent was expected here. Core annual inflation, which excludes variable energy and food prices, rose to 5.7 percent. This is a record level. It was still 5.6 percent in countries with euro currency in February.

The inflation rate is driven down by energy prices. They fell 0.9 percent year-on-year in March. It had increased by 13.7 percent in February. General inflation is now due to the rise in food and beverage prices.

For Germany, the Federal Statistical Office presented its first calculations for March the previous day – accordingly, inflation in Germany decreased slightly in March. Consumer prices increased by 7.4 percent compared to the same month of the previous year. In January and February, the annual inflation rate was still 8.7 percent.

Consumer prices are also falling in France

In the neighboring country France, the increase in consumer prices is slowing down. The price level was 6.6 percent higher than a year ago, as the statistical office in Paris Insee announced after an initial forecast. In February, the inflation rate was still 7.3 percent. Economists had expected an even stronger drop to 6.5 percent.

In the monthly comparison, the cost of living in the second largest economy in the euro zone increased by 0.9 percent. This is also a little more than expected.

ECB inflation target 2%

However, it is seen that the 2 percent price target, which is the medium-term price target of the European Central Bank (ECB), is still clearly exceeded. In mid-March, the central bank again increased the key interest rate by 0.50 percentage points. However, given the recent turmoil in financial markets, it left more course of action open.

Source: ZDF

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