Eurozone Inflation Drops to 2.2% in March as Energy Prices Decline

The European Central Bank weighs further interest rate cuts with global trade uncertainties looming.

Eurozone inflation fell to 2.2% in March 2025, marking the second consecutive month of decline, according to Eurostat's latest data.
Falling energy prices, which dropped by 0.7% year-over-year, and easing core inflation, now at 2.4%, contributed to the overall decline.
Inflation rates vary significantly across member states, with France at 0.9%, Germany at 2.3%, and Spain at 2.2%.
The European Central Bank has reduced interest rates six times since mid-2024 and will decide on further monetary policy adjustments on April 17, 2025.
Economists express concern over potential inflationary pressures from U.S. tariffs on European imports announced by President Donald Trump.