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Eurozone inflation continues to ease

Bigger-than-expected fall opens the door for ECB rate cuts as soon as June.

03 April 2024

The slow descent in inflation across the eurozone continues, with today’s flash CPI estimate at 2.4% year-on-year for March, lower than the 2.5% forecast, compared to the previous month’s reading of 2.6%, thanks to declining energy costs. At this rate of slowing an interest rate cut by the European Central Bank in June is now a firm favourite as inflation zeroes in on the official 2% target. Core inflation came in less than expected too, at 2.9% year-on-year. With the likelihood of the same slowing in wage growth numbers over the next few months then the chances of four cuts being implemented in 2024 are rising.

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Charles Hepworth

Investment Director
My Insights

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