Eurozone March preliminary CPI +2.2% vs +2.2% y/y expected

• Prior +2.3%
• Core CPI +2.4% vs +2.5% y/y expected
• Prior +2.6%

The drop in core annual inflation is the main thing here and this definitely bolsters chances for the ECB to cut rates later this month. The market pricing shows a ~76% probability and we’ll just need to wait out the tariffs situation in the next week before policymakers should start to firm up the narrative.

This article was written by Justin Low at www.forexlive.com.