Euro area annual inflation dipped to 2.2% in March 2025, down from 2.3% in February, according to final data published by Eurostat on Wednesday. The broader European Union (EU) saw inflation fall to 2.5%, down from 2.7% in the previous month.
On a monthly basis, consumer prices rose by 0.6% in the euro area and 0.5% in the EU. Meanwhile, annual core inflation—excluding volatile items such as energy, food, alcohol, and tobacco—stood at 2.4%, with a 1% month-on-month rise.
Among member states, Romania recorded the highest annual inflation at 5.1%, followed by Hungary at 4.8% and Poland at 4.4%. France had the lowest inflation rate at 0.9%, followed by Denmark (1.4%) and Luxembourg (1.5%).
The main driver of inflation in the euro area was the services sector, contributing +1.56 percentage points, followed by food, alcohol & tobacco (+0.57 pp), non-energy industrial goods (+0.16 pp), while energy made a negative contribution (-0.10 pp).
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