The Eurozone inflation rate is expected to accelerate sharply in March after several months of slowdown, reaching 1.4%, compared with 1.1% in the previous month. This is the preliminary estimates of the European Statistical Office Eurostat. The Euro rose slightly to 1.2293 USD shortly after publication of the data.
Unlike the trend in recent months, the main driver of consumer prices this year comes mainly from food, alcohol and tobacco prices, which rose sharply by 2.2% in March from 1.0% in February.
The energy prices slightly slowed down to 2.0% in the third month of the year versus 2.1% a month earlier. The prices of non-energy industrial goods also dropped from 0.6% in February to 0.2% in March.
However, services prices report acceleration of growth, albeit relatively weak – to 1.5% in March from 1.3% in the second month of the year.
The core inflation, which excludes changes in volatile commodity prices such as energy and food and is considered a more accurate indicator, also accelerates sharply to 1.3%. In the previous month it was 1.0%.
Eurostat final inflation data for the euro area and the European Union as a whole will be published on April 18th.