RoboForex analyst on Eurozone inflation: However, it's important to note that food prices continue to be a significant factor driving inflation
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FXMAG.COM: Could you please comment on the Eurozone inflation after the release?
Andrey Goilov (RoboForex): The latest inflation report for the Eurozone in March 2023 revealed that the inflation rate remained unchanged at 6.9% year-on-year, in line with the forecast. Notably, the base Consumer Price Index (CPI) for March also remained stable at 5.7% year-on-year.
The decline in gas prices could potentially contribute to a decrease in consumer prices
Andrey Goilov (RoboForex): These data suggest that the earlier trend of declining prices has paused, particularly in relation to spot gas prices in Europe. With the end of the heating season, gas extraction from underground storages has decreased significantly, leading to an impact on gas prices. This poses a challenge for Europe as it needs to replenish the storages before the next heating season, which requires time and resources. The decline in gas prices could potentially contribute to a decrease in consumer prices.
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Andrey Goilov (RoboForex): However, it's important to note that food prices continue to be a significant factor driving inflation. This issue is not limited to Europe alone, but is a global problem tied to supply chain disruptions caused by the pandemic and changes in global trade relations. Resolving this problem is not expected to be quick, which means that high consumer prices are likely to persist.
Andrey Goilov (RoboForex): In summary, while there are some factors that may facilitate a decrease in the Consumer Price Index, such as the declining trend in energy prices, food prices and supply chain challenges remain persistent challenges that are keeping consumer prices elevated in Europe in 2023.
