The core inflation, which excludes the volatility of food prices and fuels, fell from 2.6% to 2.4%. This figure stood below the expectations of 2.5%.
The Euro zone inflation It decreased last month, as expected, and a key indicator of the underlying pressures on prices also fellwhich will probably contribute to increasing expectations already generalized of a new cut of the interest rates of the European Central Bank in April.
He Growth of consumer prices in the 20 countries that share the euro were reduced to 2.2% In March from 2.3% in February, in line with the expectations of a reuters survey, due to the strong fall in energy costs and the slowdown in the inflation of services, according to Eurostat data published on Tuesday.
The core inflation, which excludes the volatility of food prices and fuels, fell from 2.6% to 2.4%. This figure stood below the expectations of 2.5%, which probably involved a relief for the ECB, a long time worried about the persistent underlying growth of prices.
ECB: between controlled inflation and the threat of tariffs
He ECB cut the interest rates six times since last June And investors are increasingly convinced that on April 17 there will be another cut of this type, since the economy is still stagnant, energy prices have backed away and the euro has shot. The recent increase in long -term yields has cast some of the ECB efforts to reduce loan costs.
Although the imminent commercial war with the United States is a fundamental threat to the Economy Economicsrecent ECB signs suggest that inflation concerns remain moderate.
Tariffs and inevitable retaliation measures slow down growth, raise prices and create a potential environment of stagnation with high inflation, which is commonly called stagflation.
However, Luis de Guindos, Vice President of the ECB, argued last week that the blow to growth would be so harmful that it would essentially extinguish extra pressure on prices and leave only an “ephemeral” impact.
European BCE lagard
Reuters
The president of the ECB, Christine Lagarde, said that a commercial war could subtract half a percentage point from the economic growth of the block, a huge decrease if one takes into account that last year’s global expansion was only 0.9%. The growth of the prices of the services slowed up to 3.4%, compared to 3.7% planned by many monetary leaders.
The services have been the largest headache for monetary policy responsible during the last year, since inflation has remained about 4% during almost all of 2024, which challenges the narrative that the relaxation of salary growth is slowly extinguishing pressures on prices.
However, Food prices inflation accelerated even more, driven by a 4.1% increase in the cost of unprocessed foods.
Source: Ambito
