FX.co ★ Eurozone Inflation Rate Slows to 4-Month Low

In March 2025, annual inflation in the Euro Area decreased to 2.2%, hitting its lowest point since November 2024 and falling just below market predictions of 2.3%, as per preliminary estimates. The data showed a deceleration in price growth for services, which registered at 3.4% compared to 3.7% in February, and a reduction in energy costs, which dropped by 0.7% from a 0.2% increase. However, the inflation rates for non-energy industrial goods remained steady at 0.6%, as did those for processed food, alcohol, and tobacco at 2.6%. Conversely, the prices of unprocessed food experienced a significant increase, reaching 4.1%, up from 3.0%. In the meantime, core inflation, excluding the more volatile food and energy categories, decreased to 2.4%, slightly undercutting the market expectation of 2.5% and achieving its lowest level since January 2022. On a month-to-month basis, consumer prices saw a rise of 0.6% in March, following a 0.4% hike in February.