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Cheaper oil prices push eurozone inflation lower

Cheaper oil prices push eurozone inflation lower

Cheaper oil dwarfed a rise in food prices to push euro area inflation lower in March, as the 19-nation region suffer from the economic damages of the coronavirus outbreak.  

CPI flash estimate slowed to 0.7 percent in the year ended March, lower than forecasts of 0.8 percent, from 1.2 percent in February.

Core CPI, excluding volatile items such as energy, retreated to 1.0 percent, compared to both prior and predicted readings of 1.2 percent and 1.1 percent respectively.

Energy prices dipped -4.3 percent, compared with -0.3 percent in February, while food, alcohol and tobacco had the highest annual rate in March, recording 2.4 percent advance, compared with 2.1 percent in February.

As of 09:22 GMT, the euro traded lower for a second straight session versus the US dollar at 1.0982, resuming its fall from last week’s top of 1.1147.

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