Consumer prices in the eurozone which were seen making a lot of noise in the first few months of the year were seen pulling back after consumer prices touched 2% in February.
Data released by Eurostat last week showed that consumer price index in the Eurozone increased 1.5%, slower than February’s 2% increase and was seen to be slower than the 1.8% increase that was forecast by economists.
Excluding food and energy prices, the core consumer price index was seen rising at a subdued pace of 0.7%, down from February’s 0.9%. The preliminary flash reading on the core inflation is the lowest core inflation rate that was registered in almost a year.
The decline in the headline and core inflation prices is likely to reinforce the dovish sentiment from the ECB officials and could also keep the central bank hawks subdued when the ECB meets in a few weeks time.
Read more: https://www.orbex.com/blog/2017/04/eurozone-inflation-slips-back-2/