The rate of growth in energy prices was the slowest: in March they fell by 0.9 percent compared to the same month last year.
Annual inflation in the 20 eurozone countries slowed to 6.9 percent in March. This is confirmed by preliminary data from the European statistical agency Eurostat, published in Twitter Friday, March 31st.
The only countries where inflation did not decrease were Slovenia, where it increased, and Malta, where it remained stable.
According to the Financial Times, the slowdown in inflation is due to a sharp drop in energy prices compared to the same month last year.
At the same time, core inflation, which excludes the cost of energy and food, on the contrary, reached another record high in the eurozone and reached 5.7 percent in March (5.6 in February), notes the FT.
The Financial Times, citing economists, warned that food and services will continue to rise in price.
“Food prices have increased from 15% to 15.4%. Inflation in the services sector has increased from 4.8% to 5%. A strong fundamental will further increase the cost of borrowing by the European Central Bank , targeting 2% inflation” , the review said.
As the publication points out, the lowest inflation rates were recorded in Luxembourg (3 percent), Spain (3.1%) and the Netherlands (4.5%). Prices rose the most in Latvia (17.3%), Estonia (15.6%) and Lithuania (15.2%).
According to analysts interviewed by the publication, the market situation will provide grounds for further rate increases by the European Central Bank (ECB), which is striving for a two percent core inflation.
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Source: korrespondent
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