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Euro zone CPI rises unexpectedly in March

Published 04/17/2012, 05:05 AM
EUR/USD
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Investing.com - Consumer price inflation in the euro zone rose unexpectedly in March, official data showed on Tuesday.

In a report, Eurostat said consumer price inflation accelerated 2.7% in March, up from a preliminary estimate of 2.6%. Analsysts had expected euro zone consumer prices to hold steady at 2.6%.

The rate remains above the European Central Bank's target of near but just below 2%.

Month-on-month, CPI jumped 1.3%, above expectations for a 1.2% increase, after rising by 0.5% in February.

Core CPI, which excludes food, energy, alcohol, and tobacco costs also rose unexpectedly in March, climbing at a seasonally adjusted 1.6%. Analysts had expected core CPI to hold steady at 1.5%.   

Following the release of the data, the euro remained added to gains against the U.S. dollar, with EUR/USD rising 0.15% to trade at 1.3161.

Meanwhile, European stock markets held on to broad gains. The EURO STOXX 50 rallied 1.6%, France’s CAC 40 jumped 1.25%, Germany's DAX rose 1.2%, while London’s FTSE 100 added 0.85%.

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