FX.co ★ Euro Area Inflation Rate Confirmed at 2.2% in March

The annual inflation rate within the Eurozone decelerated to 2.2% in March 2025, down from 2.3% in February, precisely aligning with the preliminary estimate. Energy prices reversed course, declining by 1% following a slight increase of 0.2% observed in the prior month. At the same time, there was a marginal slowdown in inflation for services, which decreased to 3.5% from 3.7%, and it remained stable for non-energy industrial goods at 0.6%. However, inflation saw an uptick in the categories of food, alcohol, and tobacco, rising to 2.9% from 2.7%. Among the Eurozone's largest economies, Germany experienced a reduction in inflation to 2.3% from 2.6%, Spain to 2.2% from 2.9%, the Netherlands to 3.4% from 3.5%, and Belgium to 3.6% from 4.4%. In contrast, the rate remained unchanged in France at 0.9% and increased in Italy to 2.1% from 1.7%. Core inflation, which excludes volatile items such as energy, food, alcohol, and tobacco, also eased to 2.4%, marking the lowest level since October 2021, down from 2.6% in February, consistent with preliminary data.