Euro-Area Inflation Slows More Than Predicted on Oil, Food
- Inflation rate at 1.5% in March; economist estimate 1.8%
- ECB’s Coeure signals it’s not yet time to change policy view
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Inflation in the euro area slowed for the first time in nearly a year this month, which may reinforce the view among some European Central Bank policy makers that it’s too soon to start unwinding unconventional stimulus.
The 1.5 percent rate of price growth in March was down from 2 percent in February and weaker than economists had forecast. The core inflation rate also fell more than expected, to the lowest in nearly a year. The release of the numbers coincided with a speech by ECB Executive Board member Benoit Coeure, who said measures of underlying inflation “remain subdued” and the outlook is “highly conditional on our policy stance.”