Inflation in the eurozone continued its downward trend in March, reaching 2.2 percent, according to data from Eurostat. This marks a slight decrease from 2.3 percent in February. The decline is primarily driven by lower prices for services and energy, which have become less expensive compared to the previous year.
The European Central Bank (ECB) aims to maintain inflation at 2 percent, and with the current figures, that target is coming into view. However, the situation in the Netherlands remains different. According to Statistics Netherlands (CBS), Dutch inflation stood at 3.7 percent in March, a minor drop from 3.8 percent in February. Eurostat, using a slightly different calculation method, recorded a Dutch inflation rate of 3.4 percent, down from 3.5 percent in the previous month.
Rising wages, along with government policies on excise duties and VAT, contribute to the relatively high inflation in across the eurozone, inflation rates vary significantly. France recorded the lowest rate at 0.9 percent, while Estonia, Slovakia, and Croatia reported the highest inflation at 4.3 percent. With inflation gradually approaching the ECB’s target, attention now turns to potential monetary policy adjustments.