The rate of increase in consumer prices in the euro area slowed down in March

The rate of increase in consumer prices in the euro area in March has slowed and moved further away from the inflation target, according to a flash estimate by the Statistical Office of the European Union (Eurostat).

According to preliminary data released on Tuesday, consumer prices in the eurozone, which comprises 19 EU countries, increased by 0.7 percent year-on-year in March.

Analysts expected 0.8 percent.

A 1.2 percent increase was recorded in February and a further 1.4 percent in March last year.

In March, energy prices dragged down euro area inflation. Energy prices fell 4.3 percent year-on-year, down from 0.3 percent in February. Food, alcohol and tobacco prices rose 2.4 percent in March, while services rose 1.3 percent in March, after the 2.1 percent and 1.6 percent increase in February. (MTI)