"Eurozone inflation accelerated to 2.5% year-on-year in March, a significant increase from 1.9% in February, primarily driven by a notable rise in energy inflation."
"Energy inflation rose to 4.9% in March from -3.1% in February, reflecting the impact of higher global energy prices due to supply disruptions stemming from conflict in the Middle East."
"The ECB is likely to remain cautious, with President Christine Lagarde hinting at a readiness to hike rates if deemed necessary, indicating a potential shift in monetary policy."
"Cebr expects the ECB to hold key policy rates at their current levels through 2026, although the risks are now firmly tilted to the upside."
Eurozone inflation increased to 2.5% year-on-year in March, up from 1.9% in February. This rise was mainly due to energy inflation, which surged to 4.9% from -3.1% in February, influenced by higher global energy prices linked to supply disruptions from conflicts in the Middle East. The European Central Bank (ECB) is expected to remain cautious, with indications from President Christine Lagarde about potential rate hikes if necessary. Cebr forecasts that the ECB will maintain current policy rates through 2026, although risks are shifting upwards.
Read at London Business News | Londonlovesbusiness.com
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