62787
Eurozone March Inflation Confirmed at 1.5%
World Economy

Eurozone March Inflation Confirmed at 1.5%

Eurozone core inflation was higher than initially forecast, the European Union’s statistics office said on Wednesday, while confirming its estimate for the headline figure.
Eurostat confirmed inflation in March in the 19 countries sharing the euro slowed down to 1.5% year-on-year from a four-year high of 2% recorded in February, Reuters reported.
But core inflation, which excludes volatile prices of energy and unprocessed food and which the European Central Bank monitors closely, was revised up to 0.8% year-on-year in March from an earlier estimate of 0.7%. The core figure remained, however, lower than the 0.9% recorded in February.
On a monthly basis, headline inflation was 0.8% in March, in line with market expectations, while core inflation was 1.2% higher, below the average forecast in a Reuters poll of 1.3%.
The revised core data may slightly strengthen the hand of those who support winding down the ECB monetary stimulus, although inflation remains below the central bank’s target of inflation close but below 2% over the medium term.
The ECB has slashed interest rates into negative territory and adopted a bond-buying program worth €2.3 trillion ($2.46 trillion) to counter the threat of deflation and revive growth in the 19-member currency bloc.
Overall inflation was lower primarily because energy prices rose by only 7.4% year-on-year from 9.3% in February. In its earlier estimates, Eurostat said energy prices went up 7.3% in March.
The statistics office confirmed prices for food and tobacco went up by 1.8% in March, from a 2.5% increase recorded the previous month.
In the services sector, the largest in the eurozone economy, prices rose by 1% in March, from 1.3% in February.
Meanwhile, fund managers are rushing into eurozone equities and shunning US stocks as fears over political risks breaking up the currency area fade days ahead of France’s election, according to a major survey of global money managers.
Bank of America’s monthly fund manager survey revealed the fifth biggest rotation from US to European stocks since the start of monetary union in 1999 this month. Markets have also turned cool on US stocks amid rising concerns that President Donald Trump’s ambitious plans for corporate tax cuts will not be realized this year.
“Investors are showing love for Europe and scrambling out of US equities, as the majority find US stocks overvalued and perceive a risk of delayed tax US reform,” said Michael Hartnett, chief investment strategist at BAML.

Short URL : https://goo.gl/huRJl3
  1. https://goo.gl/TB12aF
  • https://goo.gl/vKfexP
  • https://goo.gl/7OtOQx
  • https://goo.gl/RNwJBu
  • https://goo.gl/7AbxQJ

You can also read ...

WTO head Roberto Azevedo renews his concerns over worrying political headwinds, especially protectionism.
The World Trade Organization on Thursday upped its forecast...
The Reserve Bank of New Zealand
A leading global FX analyst expects New Zealand dollar to...
Asian central banks are not expected to mirror the Fed rate cycle as closely as in the past. The picture shows Indonesia Central Bank.
As the Federal Reserve signals an end to its decade of...
IMF Says Macron Reforms Crucial for French Growth
The government of French President Emmanuel Macron needs to...
Canada Doing Well
With strong economic growth in the first half of the year, the...
ECB: Immigration Boosts Euroland Labor Force
Immigrants have made a large contribution to the working-age...
Russia Overcomes Recession
The national economy is growing and creating a base for future...
Sub-Saharan Africa is still the world’s least industrialized region.
While much of Africa has achieved impressive economic growth,...

Add new comment

Read our comment policy before posting your viewpoints

Image CAPTCHA
Enter the characters shown in the image.

Trending

Googleplus