Romania leads the list of the highest inflations in the EU

Inflation in the euro area slowed to 2.4% in March, according to signal data published on Wednesday by the European Union’s statistics agency, boosting expectations regarding the reduction of interest rates in the summer, reports CNBC. Romania leads the list for the third consecutive month.

Economists polled by Reuters had estimated that inflation would remain constant compared to the previous month, at 2.6%.
The basic rate of inflation, excluding energy, food, alcohol and tobacco, slowed from 3.1% to 2.9%, being also below expectations, writes news.ro.

However, inflation in the services sector – a key indicator for the European Central Bank – remained stuck at 4% for the fifth consecutive month, indicating continued pressure from wage growth.

Another important indicator for the ECB announced on Wednesday, the unemployment rate in the euro area, was 6.5% in February, stable compared to January, but down from 6.6% in February 2023.

Price increases in France and Spain were lower than forecast last week.

On Tuesday, headline inflation in the bloc’s biggest economy, Germany, was estimated at a three-year low of 2.2%.

Markets expect the eurozone’s central bank to start reducing borrowing costs in June – a position reflected in recent messages from ECB policymakers.

The ECB is to organize a monetary policy meeting on April 11, stiripesurse.ro cites.

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