Eurozone inflation March 2024

Core inflation, excluding energy, food, alcohol and tobacco, fell from 3.1% to 2.9%, also below expectations.

However, inflation in services – a key monitor for the European Central Bank – remained stuck at 4% for the fifth straight month, indicating continued pressure from wage growth.

In another ECB indicator released on Wednesday, the eurozone unemployment rate was 6.5% in February, stable compared to January but down from 6.6% in February 2023.

The price rises in France And Spain It came in lower than expected last week. On Tuesday, headline inflation rose in the bloc's largest economy, Germanywas estimated at a three-year low of 2.2%.

Markets expect the euro zone central bank to start cutting interest rates in June – a position reflected in recent messages from ECB policymakers. They are scheduled to hold a monetary policy meeting on April 11.

“The current narrative clearly points to the first rate cut in June, as this will be the meeting with the full range of important data available: a new round of ECB staff forecasts, GDP growth and wage growth data for the first quarter of 2024 and “The results of the bank lending survey, just to mention the most relevant results,” Carsten Brzeski, global head of macroeconomics at ING, said in a note on Wednesday.

“We expect the ECB to remain on course next week and continue to prepare markets for the first interest rate cut in June.”