German inflation slowed more than expected in March

German inflation slowed in March, edging closer to the European Central Bank's (ECB) 2% target. Consumer prices in the country rose 2.3% from a year earlier. Economists polled by Bloomberg had forecast a 2.4% increase. The reasons for this decline are related to a reduction in the cost of services, the news agency writes.

At the same time, Italy recorded a stronger increase in consumer prices than expected. Such momentum was driven by higher costs for energy and food.

According to Bloomberg, ECB officials have not yet reached a consensus on changes in monetary policy at the upcoming meeting on April 17. This is mainly due to the unstable political situation and disruptions in global trade.

Analysts at Goldman Sachs said the region's weak economic growth reinforces their expectation that the ECB will ease monetary policy in April and June, with the third move this year now expected in July. The deposit rate would then be taken to 1.75% from the current level of 2.5%.