Eurozone inflation saw a decline in March, easing concerns and potentially setting the stage for a rate cut by the European Central Bank in June. According to the latest data from Eurostat, the inflation rate in the euro area dropped from 2.6% to 2.4%, marking a four-month low and aligning with earlier estimates.
Core inflation, which excludes food and energy prices, also decreased to 2.9% in March from 3.1% in February. The cost of food, alcohol, and tobacco rose at a slower pace of 2.6% compared to the previous month, while energy prices saw a less steep decline of 1.8%.
Meanwhile, in the US, the economy continued to show steady growth with increased hiring, but inflation remained a concern. The Federal Reserve’s Beige Book report indicated slight to modest economic growth in 10 out of 12 regional districts, reflecting the views of senior Fed officials who cautioned against rapid interest rate cuts.
On the other hand, UK inflation eased less than anticipated, raising worries about persistent inflation pressures. Official figures revealed that British consumer prices grew by 3.2% annually in March, down from 3.4% in February. Core inflation also dipped to 4.2% from 4.5%, with food costs playing a significant role in the overall inflation rate.
Analysts are closely monitoring service inflation as an indicator of domestic price trends, which saw only a slight decrease. The data from both the eurozone and the US suggest a cautious approach to monetary policy amid evolving economic conditions.
