Eurozone: Inflation eases in March
March 31, 2017
Harmonized inflation eased in March after coming in at the highest level since December 2012 in February, according to a flash estimate released by Eurostat on 31 March. Harmonized inflation was 1.5%, below February’s 2.0%. The result was below market expectations of a 1.8% reading. March’s figure brought inflation under the ECB’s target of just under 2.0% and should ease some pressure on policymakers to end their ultra-loose monetary policy stance.
According to Eurostat, the main contributor to March’s moderation was a smaller rise in energy prices as well as food, alcohol and tobacco prices. Core inflation edged down to 0.7% from February’s 0.9%, suggesting that underlying price pressures are still moderate. Month-on-month price variations and a more detailed set of data will be provided on 19 April.