Price inflation falls below 2% as interest rates take their toll, estimates show

Prices have climbed by 1.7% in the 12 months to March, this compares to price inflation of 2.3% in the year ending in February

The European Central Banks (ECB) continues to monitor prices across the eurozone as it prepares to meet next week to discuss monetary policy.

Prices increased slightly last month by 0.3%, driven by stubborn food and transport costs, but overall annual price inflation continues to slow as interest rates take their toll, new figures suggested.

Price inflation dropped to 1.7% in the 12 months to March, falling below 2% for the first time since June 2021, according to flash estimates published by the Central Statistics Office (CSO).