Inflation in the Eurozone went down this month defending a cautious policy of European Central Bank President Mario Draghi and also showing that consumer prices will be stable in the nearest future.
According to Eurostat’s information, inflation rate decreased to 1.5% in March. In February its rating was at the level of 2% (the highest one in four years), and analysts expected inflation would have more modest move and reach 1.8%. Food and services prices rose slower than it was forecasted. Underlying inflation indicator (core CPI) moved down to 0.7% in March, while the previous month it had the position of 0.9%.
After the overall inflation indicator reached the target number the ECB had set last month, some Eurozone countries tightened their pressure on the central bank President to stop a 2.3 trillion euro asset buying scheme. ECB rejected these proposals several times on the grounds that inflation has already reached its maximum level and will not touch a 2% target till 2019 because of high unemployment rates, slow growth of wages and economy in general.
Next policy meeting of the European central bank is scheduled on April 27.
After Eurostat published the report, the EUR/USD pair moved to the level of 1.0690 from the position of 1.0694 it had. The EUR/GBP also was traded lower. It moved to 0.8581 from prior 0.8592.
European stock markets also were low. The Euro Stoxx 50 index moved down by 0.45%, Germany’s DAX 30 and France’s CAC 40 dropped by 0.15% and 0.44% respectively. London’s FTSE 100 index lost 0.59%.