Inflation in the eurozone in March was 2.4 per cent, flash figures from Eurostat show on Wednesday.
SEEING CUT IN JUNE: Kyrre M. Knudsen, chief economist at SpareBank 1 SR-Bank. Photo: Iván Kverme
In advance, consumer price growth of 2.6 per cent was expected, i.e. the same growth rate as in February, according to Trading Economics.
Core inflation in the euro countries in March – which excludes energy, food, alcohol and tobacco – is stated at 2.9 per cent, the lowest level since February 2022. The consensus here was 3.0 per cent.
Core inflation in February was 3.1 per cent. With the decline in March, it has fallen for eight consecutive months, from 5.5 per cent last summer.
– Correct direction
– It is slowly but surely moving in the right direction. These are figures in the right direction, and we are on track for interest rate cuts in June in Europe, says chief economist Kyrre M. Knudsen at SpareBank 1 SR-Bank after the flash figures.
– For Norway’s interest rate path, this is positive in that case, and makes it easier for Norges Bank to cut as planned in September.
On a monthly basis, total inflation in the euro countries was 0.8 per cent. This represents an increase from the previous month, when price growth was 0.6 per cent.
The European Central Bank’s (ESB) inflation target is 2 percent. The ECB’s next interest rate decision will be published on Thursday next week, 11 April. The previous interest rate decision, in early March, ended with the policy rate unchanged. It was the fourth interest rate meeting in a row where the ECB chose to sit still.
Record low unemployment
In parallel with the inflation figures, Eurostat has published new unemployment figures for the eurozone.
These show a record low unemployment rate of 6.5 per cent in February, the same as in January.
However, a decline was expected now, to 6.4 percent, according to Trading Economics.
At its highest, the unemployment rate in the euro countries has been up to 12.2 per cent. It happened in January 2013.
Tags: inflation euro countries Finansavisen
