Eurozone Inflation Dips Slightly in March

Annual inflation in the euro area experienced a slight decrease, moving from 2.3% in February to 2.2% in March, as per a preliminary report released by Eurostat on Tuesday. The monthly inflation rate for March was recorded at 0.6%.

Key Contributors to the CPI Increase

The services sector was the largest contributor to the rise in the consumer price index (CPI), with a significant 3.4% increase. Following closely were food, alcohol, and tobacco at 2.9%, and non-energy industrial goods at a modest 0.6%.

Core CPI and Regional Variations

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