Euro area inflation eases in March

Euro area annual inflation slowed to 2.2 per cent in March 2025 from 2.3 per cent in February, while inflation across the European Union (EU) also eased to 2.5 per cent from 2.7 per cent, according to latest Eurostat data  released on Thursday.

France recorded the lowest annual inflation rate at 0.9 per cent, followed by Denmark at 1.4 per cent and Luxembourg at 1.5 per cent.

The highest rates were seen in Romania at 5.1 per cent, Hungary at 4.8 per cent, and Poland at 4.4 per cent.

Compared with February, annual inflation declined in 16 EU member states, remained unchanged in one, and rose in ten.

Services made the largest contribution to the euro area inflation rate in March by 1.56 percentage points, followed by food, alcohol and tobacco. Non-energy industrial goods added 0.16 per cent, while energy made a negative contribution of 0.10 per cent.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser