Inflation Softens Further in Europe in March
Skerdian Meta • 1 min read
Inflation weakened considerably last year in the Eurozone, as the trade war between US and China hurt the global economy. It bottomed in October, when the headline CPI (consumer price index) fell to 0.7% on an annualized basis, while core CPI bottomed in July/August at 0.8%.
We saw an increase in the last few months of last year, with core CPI peaking at 1.3% in January and headline CPI at 1.4%. But, in February we saw a slight decline in both numbers as Crude Oil declined on the Saudi Arabia-Russia price war. Crude Oil prices and other energy products have crashed further which has hurt inflation further, bringing it to the low levels we saw last year. Below is the inflation report for March:
- March preliminary CPI YoY +0.7% vs +0.8% expected
- February CPI YoY +1.2%
- Core CPI March YoY +1.0% vs +1.1% expected
- February core CPI +1.2%
The headline figure declined hard by 0.5%. more than expected, owing to the drop in energy prices over the past few weeks. However, the core reading is also seen weakening and that isn’t quite good news as inflation pressures continue to go nowhere.