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 ...

The jobless rate hovers at over 11%, well above the eurozone average of 9.3%. Among 15 to 24-year olds it leaps to 37%, compared with a European average of 18.7%.
Italy gets worse every time you look at it and offers less and...
SocGen Fined
France’s banking watchdog said Friday it had fined Societe...
Taiwan Factory Output to Grow
The Industrial Economics and Knowledge Center under the...
Economists say the United States, eurozone, Japan, Germany, France and China will all grow more slowly in 2019 than at present.
For all the talk of world economies rising in sync, there does...
Moon’s Extra Budget Plan Approved
South Korea’s parliament approved an extra budget that had been...
Any US firm doing business with PDVSA  will face punishment.
The United States under Donald Trump is considering financial...
Deutsche has the largest presence of any foreign bank in the UK.
Germany’s largest lender Deutsche Bank is bracing for Brexit and...
Saudi Growth Close to Zero
Saudi Arabia’s economy will stall this year with growth “close...

Add new comment

Read our comment policy before posting your viewpoints

Image CAPTCHA
Enter the characters shown in the image.

Trending

Googleplus