Eurozone Inflation Rate Slows to 4-Month Low

Annual inflation in the Euro Area eased to 2.2% in March 2025, the lowest rate since November 2024 and slightly below market expectations of 2.3%, a preliminary estimate showed.

Services inflation slowed to a 33-month low (3.4% vs. 3.7% in February), while energy costs declined (-0.7% vs. 0.2%).

However, inflation remained steady for both non-energy industrial goods (0.6%) and processed food, alcohol & tobacco (2.6%), and unprocessed food prices surged (4.1% vs. 3.0%).

Meanwhile, core inflation, which excludes volatile food and energy prices, fell to 2.4%, slightly below market forecasts of 2.5% and marking its lowest level since January 2022.

On a monthly basis, consumer prices rose 0.6% in March, following a 0.4% advance in February.