Eurozone March Inflation Rate 2.2%... In Line with Forecast

by Shim Seongah

Published 01 Apr.2025 19:51(KST)

The consumer price inflation rate in the Eurozone (20 countries using the euro) has slowed for three consecutive months, approaching the medium- to long-term target of 2%.

European Central Bank (ECB). Yonhap News Agency

According to Eurostat, the statistical office of the European Union (EU), on the 1st (local time), the preliminary consumer price index for March rose 2.2% compared to a year earlier, matching market expectations.

The core inflation rate, which shows the underlying trend of prices, also stabilized further from 2.6% in February to 2.4% in March. By sector, the increase in service prices, which policymakers pay particular attention to, also shrank for three consecutive months, recording 2.4%.

Ahead of the European Central Bank (ECB) monetary policy committee meeting scheduled for the 17th, it was reported that although the overall inflation rate is on a stabilizing trend, no decision has yet been made on further interest rate cuts.

The impact of new U.S. tariffs, including reciprocal tariffs announced for the 2nd, could become a variable.

ECB President Christine Lagarde appeared on Radio France Inter the day before and reiterated the forecast that the U.S.-Europe trade conflict could reduce the Eurozone’s economic growth rate by up to 0.5 percentage points (P). The ECB predicts that if the U.S. imposes a 25% tariff on European imports, the Eurozone’s economic growth rate will decrease by 0.3%P in the first year, and if the EU retaliates with the same tariff rate, it will decrease by 0.5%P.