Inflation in the euro area slowed to 2.4% y/y in March

In March 2024, inflation in the euro area rose by 2.4% y/y, slowing from 2.6% in February. Thus, inflation in Europe has been declining for the third month in a row. This is evidenced by preliminary data from Eurostat.

Analysts polled by Trading Economics expected inflation in the euro area to rise by 2.6% in March.

At the same time, monthly core inflation, which excludes energy and food costs, slowed to 2.9% in March. Energy prices decreased by 1.8% compared to 3.7% in February 2024.

The lowest inflation rates were recorded in Lithuania (0.3%) and Finland (0.7%), while the highest rates were recorded in Croatia (4.9%) and Austria (4.2%). In Germany, it amounted to 2.3%, Italy – 1.3%, and France – 2.4%.

According to the latest Eurostat data, inflation in the eurozone slowed to 2.6% y/y in February and 2.8% y/y in January.

As GMK Center reported earlier, the eurozone’s GDP in October-December 2023 remained unchanged compared to July-September last year. Compared to the fourth quarter of 2022, the eurozone economy grew by 0.1%.

The European Commission has downgraded its growth forecast for the eurozone economy in 2023 and 2024, as inflation is still too high, consumer spending is declining, and Germany, the region’s largest economy, is slipping into recession. Eurozone GDP is expected to grow by 1.3% in 2024. These figures are lower than the May forecasts of 1.6%.