Euro area annual inflation eases in March, below market forecast

By Tuba Ongun

The euro area annual consumer inflation rate slowed to 2.4% in March, below market forecast, according to flash estimates released on Wednesday.

The figure decreased from 2.6% in February, the Eurostat data showed.

The market expected the headline inflation to come in at 2.5% for the month.

Energy prices fell 1.8% from a year ago in March, following a 3.7% decline in February.

The annual price hike for food, alcohol, and tobacco continued to slow in March, to 2.7%.

Services is expected to have the highest annual rate in March with 4.0%, stable compared with the prior month, it added.

On a monthly basis, the euro area consumer price index rose 0.8% in March, accelerated from a 0.6% hike in February.

In March, energy prices in the single currency area dropped 0.3% month-on-month, while food prices rose 0.1%.