Lowest annual rates observed in Greece

In March 2021, the euro area annual inflation rate jumped to 1.3 per cent, 0.4 per cent higher compared to February 2021.

This, based to the latest economic data coming out of the statistical office of the European Union (Eurostat). However, it was noted that a year earlier the rate was 0.7 per cent.

Additionally, the European Union annual inflation was reported at 1.7 per cent, greater than February 2021 rate of 1.3 per cent; relative to the previous year with a rate of 1.2 per cent. The lowest annual rates were observed in Greece (-2.0 per cent), Portugal, Malta, Ireland and Slovenia (all 0.1 per cent).

INTEREST RATE DECREASES IN THREE MEMBER STATES

At the same time, the highest annual rates were documented in Poland (4.4 per cent), Hungary (3.9 per cent), Romania and Luxembourg (both 2.5 per cent). The annual inflation rate when compared to February 2021 decreased in three member states, remained stable in three and increased in 21.

In March, the biggest contribution to the annual euro area inflation rate came from services, followed by energy, food, alcohol and tobacco, and non-energy industrial goods.

Eurostat also noted, “the highest contribution to the annual euro area inflation rate in March 2021 came from: services (+0.57 percentage points, pp), followed by energy (+0.43 pp), food, alcohol & tobacco (+0.24 pp) and non-energy industrial goods (+0.09 pp).”

The eurozone/euro area, or EA19, represents member states that use the single currency – euro – while the EU27 includes all member countries of the bloc.