Eurozone consumer prices rose 2.2% in March — Bloomberg poll

Bloomberg reports that data on eurozone consumer prices, which is due for release on Tuesday, may show only limited improvement in inflation. 

According to the median forecast of 35 economists surveyed by the news agency, consumer prices in Europe grew by 2.2% on a yearly basis in March. This reading would be a five-month low, but still above the 2% inflation target set by the European Central Bank (ECB). The region’s core inflation might have reached 2.5% in March, Bloomberg reports. 

The European regulator will be closely watching the data on consumer prices ahead of the meeting on April 17. ECB Vice President Luis de Guindos states now is too early to talk about cutting borrowing costs or pausing monetary easing.

Meanwhile, Piero Cipollone, ECB Executive Board member, sees strong arguments in favor of lowering interest rates. He believes inflation in the region may reach the central bank’s target earlier than latest forecasts indicated.