March inflation in eurozone revised slightly downwards, still at record By Reuters

© . FILE PHOTO: A general view of a fruit and vegetable stall at a weekly market in Berlin, Germany, March 14, 2020. REUTERS/Annegret Hilse BRUSSELS () – Inflation in the eurozone was slightly lower in March than previously reported, the EU statistics office said on Thursday, but still at record highs due to a rise in energy costs. Eurostat, the statistics office of the European Union, said consumer prices in the 19 countries that share the euro rose 2.4% on a monthly basis in March, representing a 7.4% increase year-on-year. According to an earlier Eurostat estimate, inflation was 2.5% in the month in March and 7.5% year-on-year. Eurostat said 4.36 percentage points of the year-over-year total came from rising energy prices, while 1.12 points came from more expensive services and 1.07 points from food, alcohol and tobacco. The European Central Bank aims to keep inflation at 2.0% over the medium term and has indicated it will tighten policy by ending its bond-buying program later this year and then raising interest rates. Energy prices were 44.4% higher in March than a year earlier, Eurostat said, while unprocessed foods were 7.8% more expensive. But even excluding these two most volatile components from inflation measures, annual inflation stood at 3.2% in March — well above the ECB’s target.

Leave a comment