Euro Area inflation higher than expected

By @ibtimes on

The euro area inflation beat expectations and rose further from the flash estimate for March that was at 2.6% to come in at 2.7%. The ECB already acted against rising price pressures to ensure stability with last week's decision to raise rates by 25 bp to 1.25% and today's data boosted expectations that the ECB move was not a one time act.

On the month prices surged 1.4% following February's 0.4%. Core annual CPI inflation ticked marginally higher to 1.3% from 1.0 percent beating the expected 1.1%.

Inflation is above the target 2.0% for the ECB and the prudent ECB already started to take action to ensure medium term price stability at the time other central banks are delaying the move and see temporary rise in inflation which led prices to target 5.0% CPI in UK and the US feds which enjoy stable inflation also see temporary rise in prices on commodities pressures leaving the ECB the biggest hawk of all.

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