Final figures released by Eurostat on Wednesday showed that inflation in the euro area fell overall last month, even as rising energy prices and a weaker euro clouded the outlook, with the European Central Bank's 6 This confirms expectations for a monthly interest rate cut.
The inflation rate in the euro area fell to 2.4% from 2.6% in March, the lowest level in four months, confirming the validity of the preliminary figures. The euro area includes countries within the European Union that use the euro as their national currency.
Similarly, core inflation, which excludes food and energy prices, fell to 2.9% in March from 3.1% in February. Both headline and core inflation were in line with forecasts released on April 3. Food, alcohol and tobacco prices rose at a slower pace of 2.6%, after rising 3.9%, Eurostat said. At the same time, the rate of decline in energy prices slowed from 3.7% to 1.8%.
Meanwhile, the US economy is steadily growing. U.S. economic growth accelerated slightly in early spring and businesses added jobs, but little progress was made in curbing inflation, according to a Federal Reserve poll.
The latest findings from the so-called Beige Book are in line with assessments from Fed officials who have said in recent weeks that the U.S. should not be in a hurry to cut interest rates because of the strong economy and still-high inflation. The report said 10 of the Fed's 12 local districts “experienced slight or moderate economic growth,” two more districts than the previous Beige Book survey found.
Finally, UK inflation slowed less than expected, raising concerns about US-style persistence. Inflation slowed less than expected in March, official figures released on Wednesday showed, adding to signs that a first interest rate cut by the Bank of England may be further away than previously expected.
The Office for National Statistics said annual consumer price growth in the UK was 3.2%, slowing from a 3.4% rise in February and the lowest level in two-and-a-half years.
At the same time, core inflation fell to 4.2% from 4.5% in February. The expected interest rate was 4.1%. Food costs made the largest downward contribution to overall inflation, while motor fuel prices made the largest upward contribution.
Economists focused on services inflation as a measure of domestic price pressures. In contrast, the inflation rate in March was only 0.8%, down slightly from 1.1% in February to 6% in March.
This article does not constitute legal and/or financial advice and is published by Bank of Valletta plc, 58, Zachary Street, Valletta for information purposes only. Bank of Valletta is a public limited company regulated by the MFSA and is licensed to carry on the business of banking and investment services under the Banking Act (Chapter 371 of the Laws of Malta) and the Investment Services Act (Chapter 370 of the Laws of Malta). I am receiving it. provisions of Maltese law).
