Overview

• Eurozone inflation declined to 2.2% in March 2025, down from 2.3% in February, driven by negative energy prices and slower service inflation.
• Core inflation, which excludes volatile food and energy prices, fell to 2.4%, below expectations and offering relief to policymakers.
• The European Central Bank is widely expected to cut interest rates by 25 basis points at its April 17 meeting, with markets pricing in a 70-76% probability.
• The U.S. administration's impending trade tariffs, including a 25% levy on imported cars, could disrupt growth and potentially reignite inflationary pressures.
• Eurozone unemployment reached a record low of 6.1% in February, highlighting labor market resilience despite broader economic stagnation.