Eurozone Inflation Falls In March

By Benjamin Spier, David Schutz,

THE TAKEAWAY : Euro-area Marchinflation 2.6% vs. expected 2.5%-> Inflation slows lessthan expected -> EUR/USD falls 7points

Euro-Zone CPI Estimate fell to 2.6% for the month of March, when compared to the previous year. The inflation related number was still 0.1% higher than expectations.

Rising energy costs countered slowing economic growth, causing inflation to fall less than expected. However, March’s rate is still the lowest since August.

The European Central Bank has recently played a delicate balancing act between stimulating lagging growth in the Eurozone, while at the same time controlling inflation. Although today’s numbers represented a softening inflation trajectory, Euro-area CPI still remains above the ECB’s target rate of 2%.

Recent comments from ECB officials have indicated that the central bank believes it should begin winding down “crisis mode” stimulus measures in favor of policies aimed at controlling inflation in the long run.

EUR/USD continued the previous hour’s retreat from the monthly high and slid 7 points.
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Original Article: http://www.dailyfx.com/forex/market_alert/2012/03/30/Eurozone_inflation_falls_in_march.html

DailyFX is the forex news and research arm of FXCM (NYSE: FXCM), which provides currency trading and brokerage services and is an advertiser on TheStreet websites. Any opinions, news, research, analyses, prices, or other information is provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Currency trading involves significant risk of loss. Individual authors may hold positions in the currencies discussed in the article.

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