EZ Flash Inflation Weaker Than Expected

EZ MAR FLASH HICP +0.9% M/M; +1.3% Y/Y; FEB +0.9% Y/Y

EZ MAR FLASH CORE HICP +1.0% M/M; +0.9% Y/Y; FEB +1.1% Y/Y

• EZ inflation accelerated to 1.3% in Mar, coming in slightly weaker than markets expected (BBG: +1.4%) and marking the highest level since Jan 2020.
• Core inflation eased to 0.9%, showing a three-month low and registering below market forecasts (BBG: +1.1%)
• Energy inflation was the main driver of Mar's uptick, rising by 4.3% after falling by 1.7% in the previous month.
• Services inflation ticked up by 0.1pp to 1.3% in Mar, while food prices decelerated by 0.2pp to 1.1%.
• Non-energy industrial goods prices fell to 0.3% in Mar, down from 1.0% seen in Feb, hitting a three-month low.
• Among the member states, Luxembourg (2.4%), Germany and Austria (both +2.0%) showed the largest HICP rates, while Greece (-2.0%) saw the only decline in consumer prices.