Eurozone annual inflation slows to 6.9% in March
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Annual inflation in 20 eurozone countries slowed down to 6.9% in February after 8.5% in February and 8.6% in January. The decline in inflation is mainly due to a sharp decline in energy prices compared to March 2022, follows from the preliminary estimates Eurostat.
The growth rate of prices for food, alcohol and tobacco in annual terms accelerated to 15.4% after 15% in February, and for services – up to 5% after 4.8% a month earlier.
At the same time, non-energy manufactured goods rose in price by 6.6% compared to 6.8% last month, while energy products fell in price by 0.9% after rising prices by 13.7% in February and 18.9% in January . Core inflation – excluding food and energy – accelerated to a record 5.7% in February from 5.6% in February.
The lowest inflation rates were recorded in Luxembourg (3%), Spain (3.1%) and the Netherlands (4.5%). Prices rose the most in Latvia (17.3%), Estonia (15.6%) and Lithuania (15.2%).
Analysts polled by Reuters had expected annual inflation of 7.1%. The recorded decline turned out to be the largest for the entire observation period since 1991, notes agency.
March 16 European Central Bank (ECB) raised base interest rate by 50 bp. up to 3.5%, by 50 b.p. also increased rates on deposits and on margin loans of the ECB, up to 3.75% and up to 3% respectively. This is the sixth rate increase in a row and the third one – 50 bp. n. in a row. Prior to that, in October and November, the regulator raised rates by 75 basis points at once. P.
As Vedomosti previously wrote, in the ECB Governing Council called The most desirable for Europe is the achievement of the maximum rate by September of this year. This will allow the pan-European regulator to reach the inflation target of 2% by 2024-2025, said François Villeroy de Galo, board member and chairman of the Bank of France.
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