Inflation moderates to 2.4% in March
The statistical office of the European Union, Eurostat, has published a preliminary estimate indicating a drop in annual inflation in the euro area to 2.4% in March 2024. This data represents a decrease of two tenths compared to the 2.6% recorded in February.
Breakdown by components:
- Services: They are expected to maintain the highest annual rate at 4.0%, unchanged from February.
- Food, alcohol and tobacco: The estimated annual rate is 2.7%, falling 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 general decrease in inflation in March can be attributed to the fall in energy prices. However, the core inflation rate, which excludes energy and fresh food prices, remains stable at 3.2%. This data indicates that inflationary pressures persist in the euro zone.
The fall in inflation could relieve pressures on the European Central Bank to raise short-term interest rates. However, the persistence of underlying inflation could maintain the uncertainty about monetary policy in the euro zone.
U!
For more information, you can consult the Eurostat publication.
Publication
