Inflation in the eurozone is estimated to have held steady in March from February at a 10-month high. Eurozone annual inflation is expected to be 2.4pc in March, according to a flash estimate issued today by EU statistics office Eurostat. Analysts had expected inflation to ease to 2.3pc. Concern over rising consumer prices may cause the European Central Bank to think twice before cutting interest rates again, although its has indicated that further cuts are in the pipeline and that it is aware that the current rise in prices is largely due to temporary spikes in oil prices.
Inflation surged in February as tensions over Iraq sent oil prices soaring. Energy costs rose 1.8pc last month from January to leave them up 7.6pc on the year, up from 6.0pc in January. Eurostat calculates its provisional estimate for inflation using early price information from Germany and Italy and data on energy prices. Final March HICP figures are due to be released on 16 April. //www.fxcentre.com