Eurostat: Annual inflation in the eurozone accelerated to 1.4 percent in March

The growth of consumer prices in the eurozone accelerated in March on an annual basis, primarily due to the increase in food prices, preliminary estimates from Eurostat showed on Wednesday.

The annual inflation rate measured by the harmonized index of consumer prices (HICP) accelerated to 1.4 percent in March in the 19-member economy, up from 1.1 percent in February, Eurostat announced in preliminary estimates.

This brings it back to the level of last December, although it still significantly lags behind the European Central Bank’s (ECB) target level of just under two percent.

>>>DZS: Consumer prices in January increased by 1.1 percent year-on-year

Core inflation, which excludes energy and food prices, also slightly increased in March, to 1.3 percent, from 1.2 percent recorded in February.

Among the main components of the HICP, in the segment of food, alcohol, and tobacco, prices increased at a rate twice as strong on an annual basis, at 2.2 percent. In February, they had risen by one percent, the report shows.

>>>Due to cheaper energy and fresh food, inflation in the eurozone further weakened in January

Fresh food, meanwhile, increased by 0.9 percent on an annual basis, after having decreased by the same percentage in February compared to the same month of the previous year.

Price growth also slightly accelerated in the services segment, which increased by 1.5 percent compared to the same period last year. In February, they had risen by 1.3 percent.

However, the growth of energy prices slightly slowed to two percent, down from 2.1 percent in February. The growth of prices for non-energy industrial products also slowed to 0.2 percent, down from 0.6 percent in the previous month.