According to Eurostat’s announcement yesterday, Cyprus ranks among the top five countries in the Eurozone with the lowest inflation in March, based on the harmonised consumer price index.
The inflation rate in Cyprus dropped to 1.6% on an annual basis (compared to March 2023, which was 6.1%), down from 2.1% in February.
Inflation in Cyprus in March was below the Eurozone average, which slowed to 2.4% annually from 2.6% in February, while the average analyst estimate had predicted it to remain unchanged.
However, it should be noted that the March data announced by Eurostat yesterday still includes the reduction in fuel consumption tax in Cyprus, which ended on 1st April 2024.
Today, the Consumer Price Index is expected to be announced by the Statistical Service, and as usual, there will be a slight discrepancy from the European Statistical Service data.
The lowest inflation in March was recorded in Lithuania at 0.3%, Finland at 0.7% on an annual basis, Latvia at 1%, Italy at 1.3%, and Cyprus at 1.6%.
The highest inflation in March was in Croatia at 4.9%, Estonia at 4.1% annually, Austria at 4.2%, Belgium at 3.8%, Slovenia and Greece at 3.4%. The inflation in Germany last month recorded a bigger drop than analysts expected. Specifically, inflation in Germany decreased to 2.3% in March from 2.7% in February.
Analysts had predicted it to be at 2.4%. On a monthly basis, the Consumer Price Index moved 0.6% higher.
At the same time, inflation in France fell below 3% for the first time in 2.5 years. The Consumer Price Index rose by 2.4%, compared to the same month last year, down from 3.2% in February.
Examining the main components of inflation in the Eurozone, services had the highest annual rate in March (4.0%, unchanged from February), followed by food, alcohol, and tobacco (2.7%, down from 3.9% in February), non-energy industrial goods (1.1%, down from 1.6% in February), and energy (-1.8%, up from -3.7% in February).
In Cyprus, services had the highest annual growth rate in March (4.2%, unchanged from February), inflation in food was 1.8%, down from 2.2% in February, and energy was -3.9%, down from -2.3% in February.
It should be noted that the Governing Council of the European Central Bank meets on 11th April and is expected to keep interest rates unchanged for the fifth consecutive time, with President Christine Lagarde hinting at June as a possible starting point for monetary policy easing.
