Preliminary data published by Eurostat showed that the eurozone annual inflation slowed again in March, matching November's 28-month low. Meanwhile, core inflation reached its lowest level since February 2022, which strengthens the case for the start of the ECB's monetary policy easing cycle. Investors see almost no chance of a cut on April 11 but have fully priced in a move for June, followed by another two or three steps later this year.
According to the report, the consumer price index rose by 2.4% per year after rising by 2.6% per year in February. Economists had expected an increase of 2.6%. Meanwhile, on a monthly basis, the consumer price index rose by 0.8%, accelerating compared to February (+0.6%).
Eurostat reported that the core consumer price index - energy, food, alcohol & tobacco - rose by 2.9% per year after an increase of 3.1% per year in February. Economists had expected an increase of 3.0% per annum.
The data showed that the annual growth of the overall consumer price index was due to an increase in the cost of services (+4.0% vs. +4.0% in February), food, alcohol & tobacco (+2.7% vs. +3.9%) and non-energy industrial goods (+1.1% vs. +1.6%). Meanwhile, energy prices fell by 1.8% per annum after declining by 3.7% per annum in February.