Cost Of Living Crisis

Eurozone inflation drops but accelerating core prices strengthen case for more rate hikes

Consumer prices rose by 6.9% in March after an 8.5% increase in February, but core inflation hit a new eurozone high, bolstering ECB officials keen on further interest rate hikes

The drop in overall inflation levels was mostly down to a drop in energy prices compared to March last year. Picture: Getty

Underlying inflation in the euro area hit another record in March, new figures showed, which will strengthen the case of European Central Bank (ECB) officials who say interest-rate increases are not over yet.

Overall consumer prices rose by 6.9 per cent in March after an 8.5 per cent increase in February, which is one of the biggest monthly slowdowns since Eurostat started collecting data in 1991.

However, the core inflationary reading for March – which ...