Eurozone inflation rises less than expected in March
Consumer prices in the eurozone rose more slowly than initially thought in March, according to the latest data from Eurostat.
Annual inflation increased to 1.3% from 1.1% in February, slightly below the initial estimate of 1.4% and March 2017's rate of 1.5%. It also marked the lowest level since December 2016.
The lowest rates were seen in Cyprus, Greece and Denmark, while the highest were recorded in Romania, Estonia, Slovakia and Lithuania.
The biggest contribution came from services, followed by food, alcohol and tobacco, energy and non-energy industrial goods.
Pantheon Macroeconomics economist Claus Vistesen said: "Overall, we think headline inflation in the Eurozone will rise to about 2% in the next three-to-six months, and we also think the core rate will edge higher, mainly due to higher services inflation, to about 1.4% at the end of the year."
Anthony Kurukgy, senior sales trader at Foenix Partners, said: "The ECB’s minutes on its last meeting suggested that policy members were split on when QE will come to an end this year. The latest Inflation figures released today will surely add weight to the debate having missed expectations, which may highlight a bigger problem for President Draghi and co.
"Even with eurozone unemployment currently sitting at its lowest level since 2008, inflation woes continue to keep monetary policy cautious as Europe’s central bank will have no other option but to keep euro hawks grounded and stress its ‘patient and persistent’ approach to monetary policy normalisation will continue, at least for the short term."