Germany's sliding headline inflation boosts bets ECB will cut interest rates in June

Eurozone data, due Wednesday, are expected to show a dip to 2.5%. A Bloomberg Economics nowcast updated after the German figures suggests a slightly lower reading of 2.4%.

The overall picture is still that of a broad weakening, allowing the ECB to prepare investors for a first reduction in borrowing costs in June. Picture: AP/Michael Probst

German inflation eased for a third month in March, supporting expectations that the European Central Bank (ECB) will start lowering interest rates in June.

Consumer prices rose an annual 2.3% last month, according to the statistics office — down from 2.7% in February and less than the 2.4% median estimate in a Bloomberg poll of economists. Food costs were a key driver of the slowdown.