A man pushes the shopping carrier with food shopping and walking in front of a canned vegetable corridor with “hair bottom” stickers in the Ocean supermarket in Gilhrand Grangs, France, March 8, 2025.
Nicholas Guyonite AFP | Gety pictures
The annual euro zone enlarged as expected by 2.2 % in March, according to Flash data from the Eurostat Statistical Agency published on Tuesday.
Tuesday printing is slightly lower than the final reading of 2.3 % for the month of February.
The so -called basic inflation, which excludes food, energy, alcohol and tobacco prices more volatile, decreased to 2.4 % in March from 2.6 % in February. The inflation printing in the services that were closely monitored, which was long ago about the 4 % mark, has decreased to 3.4 % in March of 3.7 % in the previous month.
Recent initial data showed that March inflation is less than expected in many eurozone economies. Last month’s inflation last month 2.3 % in Germany It decreased to 2.2 % in SpainWhile staying unchanged at 0.9 % in France.
European Central Bank decision in the future
The numbers, which are coordinated throughout the euro area for comparison, have strengthened expectations for 25 Basa of the interest rate from the European Central Bank during its next meeting on April 17. The markets were about 80 % of this reduction after the launch of inflation data in the euro area on Tuesday, according to LSEG data.
Jacques Allen Reynolds, Vice President of Economists in the eurozone in Capital Eightingx, said in a memorandum on Tuesday that reducing inflation in services especially increases the chances of reducing the interest rate in the European Central Bank.
“We believe that this decrease, along with strong evidence that it will decrease more … and the continued weakness in the latest activity polls, will be sufficient to demand the European Central Bank to reduce interest rates by 25 points on the stock exchange again later this month.”
Separately on Tuesday, the data also showed that the seasonal unemployment rate in the eurozone in February reached 6.1 %, continuing its last declining direction. Reuters economists expected to remain unchanged at 6.2 %.
Unemployment usually decreases in low interest rate environments, as companies can enhance their labor spending amid cheap borrowing costs. The pocket started to reduce the past interest rates JuneThe European Central Bank assembled its main average and the rate of deposit facilities, a decrease of 4 % To 2.5 %.
A tariff of uncertainty
The European Union is scheduled to be slapped by the definitions due later this week from the American Administration of Donald Trump – including a 25 % tax on the importer Cars.
While the precise impact of definitions and reprisals is still uncertain, many economists have warned for several months of their influence. It can be inflation.
The exact impact of the customs tariff policies from the United States and its commercial partners on inflation remains largely unclear, according to Bert Colegen, the chief economist in the Netherlands in that the contraction is also an option.
“The American definitions can lead to shrinkage in the euro area market while it is depressed export and thus growth,” he said, adding that it can also lead to an increase in the supply of goods in the euro area market.
Collen explained that the European Union’s response may be decisive in shaping the economic impact of the tariff.
“It is likely that the retaliatory measures of the European Commission will have an ascending effect on the enlargement of the euro area, because it is basically a local tax to be offered and will be paid by consumers to some extent,” he said.
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