Annual inflation in countries using the euro currency fell faster than expected in March, official data showed on Wednesday.
Consumer prices in the euro zone rose by just 2.4%, down from 2.6% in February, according to EU statistics agency Eurostat.
Meanwhile, Germany recorded an annual inflation rate of 2.2% in March, down from 2.7% in February.
Analysts' forecasts for the eurozone ranged from no decline at all to a decline of around 2.5%.
Inflation in the single currency area has fallen sharply from its peak of 10.6% in October 2022, as Russia's invasion of Ukraine in February affected Europe's energy costs.
Almost on target
Although inflation is nearing the European Central Bank's (ECB) target of 2%, experts do not expect a rate cut at its next monetary policy meeting on April 11.
The first reduction in borrowing costs is expected until June.
The ECB significantly raised interest rates to a record high of 4% from July 2022 to September 2023 in order to curb the surge in inflation that began after the Russian invasion, but from October 2023 onwards, interest rates will remain at a stable level. Maintained.
Rising interest rates combat inflation by creating more credit to buy things at higher prices. This reduces spending and reduces pressure on prices.
But rate hikes could also slow economic growth, which is why governments fear the ECB will declare victory over inflation and resume rate cuts.
tj/ab (AFP news, AP news)
