Eurozone Inflation Falls in March
Euro-Zone CPI Estimate fell to 2.6% for the month of March, when compared to the previous year. The inflation related number was still 0.1% higher than expectations.
Rising energy costs countered slowing economic growth, causing inflation to fall less than expected. However, March’s rate is still the lowest since August.
The European Central Bank has recently played a delicate balancing act between stimulating lagging growth in the Eurozone, while at the same time controlling inflation. Although today’s numbers represented a softening inflation trajectory, Euro-area CPI still remains above the ECB’s target rate of 2%.
Recent comments from ECB officials have indicated that the central bank believes it should begin winding down “crisis mode” stimulus measures in favor of policies aimed at controlling inflation in the long run.
EUR/USD continued the previous hour’s retreat from the monthly high and slid 7 points.
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