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FILE - The European Central Bank is reflected in the river Main in Frankfurt, Germany, Thursday, March 21, 2024. The inflation that has squeezed European shoppers fell more than expected in March to 2.4%, as cost spikes in the grocery aisle eased and overall price rises headed down in the two biggest economies, Germany and France. (AP Photo/Michael Probst, File)

Inflation has slid again in Europe. What that means for interest rates

Inflation has fallen again in Europe, to 2.4% in March

By DAVID McHUGH
Published - Apr 03, 2024, 05:06 AM ET
Last Updated - Apr 03, 2024, 05:06 AM EDT

FRANKFURT, Germany (AP) — The inflation that has squeezed European shoppers fell more than expected in March to 2.4%, as cost spikes in the grocery aisle eased and overall price rises headed down in the two biggest economies, Germany and France.

The annual figure for the 20 countries that use the euro currency came in below the 2.5% predicted by financial markets and brings the European Central Bank ever closer to its inflation goal of 2%.

But analysts say the decline from 2.6% in February, though welcome, would likely not be enough to move up the first interest rate cut from the ECB.

The bank meets April 11 but the first reduction in borrowing costs is not expected until June despite an economy that's failing to grow, several analysts said.

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