Suche
Mein Konto
Price pressure in the euro area falls: Inflation constant in March
Price pressure in the euro area fell in March. Eurostat confirms the inflation rate of 2.4% and signals from the ECB of a potential interest rate cut. Information from Andreas Plecko.
Price pressure in the euro area falls: Inflation constant in March
Price pressure in the euro area fell in March, with core inflation in the services sector also remaining stable. The overall annual inflation rate fell to 2.4 percent compared to the previous month's 2.6 percent, as reported by statistics agency Eurostat in a second release. This downward trend in price levels brings price developments closer to the European Central Bank's (ECB) medium-term target of 2 percent inflation.
Core inflation, which excludes the prices of energy, food, alcohol and tobacco, also fell. The core rate was 2.9 percent compared to 3.1 percent in the previous month. This value is viewed by economists as an indicator of the inflation trend. Consumer prices rose by a total of 0.8 percent in one month in March, while the core rate increased by 1.1 percent. This preliminary data confirmed economists' expectations.
ECB President Christine Lagarde has signaled the Council's “conditional willingness” to cut interest rates at the June meeting. Experts believe only an unexpected shock could prevent the ECB from easing monetary policy, although the exact course beyond June is uncertain. Overall, developments in March show a slight downward trend in price pressure in the euro area.
By Andreas Plecko, FRANKFURT (Dow Jones)