Eurozone inflation has fallen sharply to its lowest degree for a yr after a decline in power prices.

Harmonised shopper costs within the euro space rose by 6.9 per cent within the yr to March, down from 8.5 per cent the earlier month, to achieve their lowest degree since February 2022.

The drop, as a result of a 0.9 per cent fall in power costs, was steeper than a forecast by economists polled by Reuters, who had anticipated March eurozone inflation of seven.1 per cent.

It can bolster calls for for the European Central Financial institution to cease elevating rates of interest, already at their highest degree because the 2008 monetary disaster.

The previous month’s turmoil within the banking sector has additionally raised the prospect of a credit score crunch that might slam the brakes on each inflation and progress within the coming months.

Nonetheless, ECB officers have signalled they’re more likely to proceed elevating charges at their subsequent coverage assembly in Could until the banking turmoil worsens.

The drop in headline inflation got here regardless of an extra acceleration within the price of value will increase for meals and providers.

Core inflation, which excludes power and meals prices to provide a greater view of underlying value pressures, hit a brand new eurozone excessive of 5.7 per cent in March, up from 5.6 per cent the earlier month.