Euro area inflation likely to have risen moderately in March

Euro area’s March inflation data is set to be released this week. According to a DBS Bank report, the headline consumer price inflation is expected to have risen modestly to 1.2 percent year-on-year from February’s 1.1 percent. However, the sequential momentum is expected to have remained weak.

One-off factors under food and the effects of Easter holidays, mainly services, might lift March trends. German numbers out late last week saw consumer prices having risen 1.5 percent year-on-year from 1.2 percent in February, but undershooting consensus, stated DBS Bank.

A possible rise in the zone-wide March inflation might be eased by high base effects and the easing effect of high oil prices, keeping inflation well below target. Core pressures also continue to be tepid, hovering around 0.9-1 percent in the past year, added DBS Bank.

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