The inflation moderates to 2.4% in March
The European Union’s statistical office, Eurostat, has released a preliminary estimate showing a decline in the annual inflation rate for the euro area to 2.4% in March 2024. This figure represents a decrease of two tenths compared to the 2.6% recorded in February.
Breakdown by components:
- Services: Expected to maintain the highest annual rate at 4.0%, unchanged from February.
- Food, alcohol, and tobacco: The estimated annual rate is 2.7%, down from 3.9% in February.
- Non-energy industrial goods: The annual rate stands at 1.1%, down from 1.6% in February.
- Energy: The annual rate experiences a significant drop to -1.8%, compared to -3.7% in February.
The overall decline in inflation in March can be attributed to the fall in energy prices. However, the core inflation rate, which excludes energy and food prices, remains stable at 3.2%. This indicates that inflationary pressures persist in the euro area.
The fall in inflation could ease the pressure on the European Central Bank to raise short-term interest rates. However, the persistence of core inflation could maintain uncertainty about monetary policy in the euro area.
For more information, you can consult the publication from Eurostat.