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Eurozone Inflation Falls to 2.2% as ECB Faces Key Policy Decision

Declining energy prices and moderated core inflation drive the decrease, but U.S. tariff threats introduce new economic uncertainties.

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Die Inflation geht in vielen europäischen Ländern derzeit zurück.
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Overview

  • The Eurozone's inflation rate dropped to 2.2% in March 2025, down from 2.3% in February, according to Eurostat's latest estimate.
  • Energy prices declined by 0.7% year-on-year, significantly contributing to the overall inflation reduction, while core inflation eased to 2.4%.
  • National inflation rates remain uneven, with France at a low 0.9%, Germany at 2.3%, Spain at 2.2%, and Italy experiencing an increase to 2.1%.
  • The European Central Bank has reduced interest rates six times since mid-2024 and is deliberating whether to implement further cuts or pause during its April 17 meeting.
  • Donald Trump's proposed 25% tariffs on European auto imports, set for April 2, could heighten inflationary pressures and complicate ECB policy decisions.