Euro zone inflation unexpectedly slowed in March, adding to the pressure on the ...
BRUSSELS/FRANKFURT - Euro zone inflation unexpectedly slowed in March, adding to the pressure on the European Central Bank as it battles an economic slowdown which threatens to undo years of stimulus.
In a more worrying sign, a closely watched underlying inflation figure that excludes volatile food and energy prices, slowed to 1.0 percent, its weakest reading since April 2018. “Today’s price data should further depress inflation expectations in the market, all the more so as the headline inflation rate fell to 1.4 percent in March,” Commerzbank economist Christoph Weil said on Monday.
It is also working on plans to give banks even more cheap loans, hoping to maintain the flow of credit to the economy.
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