Annual inflation in the Eurozone rose to 2.5% in March, up sharply compared to 1.9% in February, according to Eurostat’s flash estimate. The increase in consumer prices is lower than that expected by the consensus, the average of analysts’ estimates.
It is the effect of the attack launched by Israel and the USA against Iran, which caused the closure of the Strait of Hormuz and a surge in gas and oil prices: among the various components driving the increases is energy, which recorded a 4.9% increasecompared to a 3.1% decline in February, before the attack. This is followed by services (+3.2% compared to +3.4% in February), food, alcohol and tobacco (+2.4% from +2.5%) and non-energy industrial goods (+0.5% from +0.7%).
Core inflationpurified from energy, food, alcohol and tobacco (the most volatile components) fell to 2.3%from 2.4% in February, a sign that the increases have not yet fully manifested their effects in the rest of the economy. Also in this case the price increase is lower than market expectations.