Eurozone Inflation Drops to 2.4% in March, Surprising Analysts

The unexpected decrease brings the European Central Bank closer to its 2% inflation target, though interest rate cuts are not anticipated until June.

Inflation in the Eurozone fell to 2.4% in March, down from 2.6% in February, with significant drops in Germany and France.
Analysts had not predicted the decrease, with some expecting the rate to hold steady or only slightly dip.
Core inflation, excluding volatile food and energy costs, also decreased, signaling a broad easing of price pressures.
Despite the decline, the European Central Bank is expected to maintain current interest rates at its next meeting on April 11, with the first cut likely in June.
The inflation decrease is a positive sign for the Eurozone economy, which has struggled with high inflation rates since the Russian invasion of Ukraine in 2022.