Eurozone Sees a Marginal Drop in Inflation Rates

According to a preliminary report by Eurostat released on Tuesday, the annual inflation rate in the euro area experienced a slight decrease from 2.3% in February to 2.2% in March. The monthly inflation for March was recorded at 0.6%, indicating a steady but slow pace of price increases across the region.

Sector-Wise Contribution to Inflation

The services sector led the charge in the consumer price index (CPI) increase with a significant 3.4%, closely followed by food, alcohol, and tobacco at 2.9%. Non-energy industrial goods, on the other hand, contributed a modest 0.6% to the overall inflation figures.

Core CPI and Regional Variations

The core CPI, which excludes the volatile categories of energy, food, alcohol, and tobacco, saw a year-on-year rise of 2.4% and a monthly increase of 1% since February. Regional disparities were notable, with Slovakia, Estonia, and Croatia recording the highest inflation rates at 4.3%, while France reported the lowest at a mere 0.9%.