Eurozone CPI was finalized at 1.4% yoy in March, unrevised, down from 1.5% yoy in February. Core CPI was finalized at 0.8% yoy, unchanged from February’s reading. EU28 inflation was confirmed at 1.6% yoy.
The highest contribution to the annual euro area inflation rate came from energy (+0.52 percentage points, pp), followed by services (+0.51 pp), food, alcohol & tobacco (+0.34 pp) and non-energy industrial goods (+0.04 pp).
EUR/USD attempts to rally earlier today but fails to take out 1.1324 resistance. It’s staying in range after the releases.
Germany halves 2019 growth forecast to 0.5%
Germany’s Economy Ministry lowered 2019 growth forecast to a mere 0.5%, just half of January’s projection of 1.0% (downgraded from 1.8%). If realized, that would be slowest growth in six years. For 2020m, growth is projected to pick up to 1.5%.
Economy Minister Peter Altmaier said externally, slowing global growth, trade tensions and Brexit uncertainty are weighing on the economy. Internally, introduction of the new car emission regulations and unusually low Rhine water levels are negative factors.
The ministry also noted that global economy should regain some momentum ahead. Strong import would mean a negative contribution to growth in 2019, “purely mathematically”.
Full release here.