Services And Energy Led Eurozone Inflation Higher in March

Data from the European Union statistics office Eurostat revealed today, Friday, that eurozone inflation accelerated, according to preliminary estimates in March, mainly driven by rising costs of services and energy.

Eurostat confirmed its earlier estimates that consumer prices in the eurozone, which includes 19 countries, rose 0.9% on a monthly basis, registering an increase of 1.3% on an annual basis, accelerating from an average of 0.9% year on year in January and February.

The European Central Bank wants to keep inflation near 2%, but below that level in the medium term.

Services were the main driver of the increase, adding 0.57 percentage points to the overall result, while volatile energy prices added 0.43 points.

Food, alcohol and tobacco added another 0.24 points.

And without volatile energy and food prices, a measure the European Central Bank calls core inflation, prices rose 0.8% month-on-month and 1% year-on-year, as initial estimates said.

A narrower measure that excludes alcohol and tobacco, which many economists are following, showed prices increased 1% on a monthly basis and 0.9% on an annual basis. Both measures showed a slower rate of price growth than in previous months.