London
CNN
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Inflation in Europe has fallen to its slowest pace in more than a year, though stark signs of persistent underlying pressure on prices will complicate policymakers’ next move on borrowing costs.
Prices in the 20 countries that use the euro rose 6.9% this month compared with a year ago, the European Union’s statistics agency said Friday.
That’s a sharp decline from 8.5% in February and the lowest inflation rate since February 2022, when Russia launched its full-scale invasion of Ukraine, sending energy prices soaring. The pullback in inflation this month was driven by a 0.9% year-on-year fall in energy prices.
But the latest data includes evidence of lingering upward pressure on prices. The price of food, alcohol and tobacco climbed 15.4% year over year, up from 15% in February. And prices for services rose 5%, up from 4.8%.
More worryingly,…
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