Eurozone inflation is forecast to slow slightly to 2.5 per cent when March data is published on Wednesday, providing something for both sides in the debate about how soon the European Central Bank should cut interest rates.
Most economists think consumer price growth will dip from 2.6 per cent the previous month. Smaller increases in goods and food prices are expected to be largely offset by higher oil prices and the impact of an earlier Easter period, which is expected to raise prices of package holidays and flights.
“Steady core inflation should reflect ongoing disinflation in goods and a temporary reacceleration in service prices due to the early timing of Easter, which is expected to fuel an increase in prices for holiday-related items,” UniCredit economists wrote in a note.