Euro area inflation rate confirmed at 2.2% in March

Annual inflation in the Eurozone edged down to 2.2% in March 2025 from 2.3% in February, aligning with the preliminary estimate. The decline was largely driven by a renewed drop in energy prices, which fell 1% following a modest 0.2% increase in the prior month.

Euro area inflation rate confirmed at 2.2% in March

Inflation in services eased slightly to 3.5% from 3.7%, while non-energy industrial goods held steady at 0.6%. In contrast, price pressures intensified for food, alcohol, and tobacco, with annual inflation climbing to 2.9% from 2.7%. Among the region’s major economies, inflation cooled in Germany (2.3% vs 2.6%), Spain (2.2% vs 2.9%), the Netherlands (3.4% vs 3.5%), and Belgium (3.6% vs 4.4%). In France, it remained unchanged at 0.9%, while Italy saw a notable acceleration to 2.1% from 1.7%.

Core inflation slows

Core inflation, which excludes volatile items such as energy, food, alcohol, and tobacco, dropped to 2.4% in March—down from 2.6% in February and matching preliminary estimates. This marked the lowest core inflation rate since October 2021, potentially giving the European Central Bank more flexibility to consider policy easing as it balances inflation control with growing concerns over economic growth. On a monthly basis, core consumer prices increased by 1%.