Connect with us

Hi, what are you looking for?

Financial News

Here’s The Present Rate of Inflation In Europe

Is Inflation Being Managed More Effectively or Ineffectively in Europe?

The inflation rate in the Eurozone dropped to 1.5% in March, a decrease from 1.9% in February, as reported by Eurostat, the EU’s statistical agency.

This decline in inflation was largely driven by a reduction in energy costs, which saw a 4.3% decrease in March compared to the same period last year. On the other hand, prices for food, alcohol, and tobacco rose by 1.5% year-on-year, while non-energy industrial goods saw an increase of 0.7%.

The reduced inflation rate is likely to alleviate concerns among certain policymakers regarding the potential negative impact of rising inflation on the Eurozone’s economic recovery.

However, it could also raise concerns about deflation, which has the propensity to trigger a detrimental cycle of declining prices, reduced demand, and economic stagnation.

The European Central Bank (ECB) has set a goal of achieving a 2% inflation rate for the Eurozone and has been implementing an accommodating monetary policy to stimulate economic growth.

This decrease in inflation coincides with the Eurozone facing the economic repercussions of the COVID-19 pandemic. Despite recent increases in vaccination efforts, several countries in the area are still grappling with limitations on business operations and travel.

The ECB has committed to retaining its accommodative policy approach until a robust economic recovery is firmly established, a process that is anticipated to take a considerable amount of time.

You May Also Like


Previously, in April, the CEO of Tesla and SpaceX, Elon Musk, caused quite a stir by revealing his intentions to procure the entire social...


Concerns about rising prices are impacting the entire economy of the United States, and one sector that is particularly affected is the real estate...


With rising expenses in fuel and power worldwide, particularly in the United States, the quest for sustainable energy sources has intensified. A significant historical...


Kellogg, a major supplier of packaged foods in the United States and globally, has maintained overall centralized control of all its owned labels during...