Prices of groceries, tobacco and alcohol are rising less rapidly in the euro zone | Economy

Inflation has weakened because prices for food, alcohol and tobacco rose less rapidly on an annual basis in March than in February, reports the European statistical agency Eurostat. This means that inflation is slightly lower than expected, as economists had expected an average of 2.5 percent.

On a monthly basis, consumer prices rose by 0.8 percent. Core inflation, which does not include the highly fluctuating prices for energy, food, alcohol and tobacco, fell to 2.9 percent. In February, core inflation was still 3.1 percent.

Inflation in the euro area is now approaching the European Central Bank’s (ECB) target of 2 percent. In 2022, inflation rose to a peak of almost 11 percent. This was due to the sharply increased energy prices. These had increased considerably due to the war in Ukraine.

To slow inflation, the ECB has raised interest rates to a record level. The central bank in Frankfurt is now discussing when interest rates can be lowered again. The financial markets expect the first reduction in June.