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.