Euro zone consumer prices grew less than expected year-on-year in March, data showed on Friday, with energy costs the main driver behind the increase.
The European Union's statistics office, Eurostat, said consumer prices in the 16-country currency area rose 0.9 per cent month-on-month and 1.4 per cent year-on-year.
Energy prices jumped 2.6 per cent month-on-month for a 7.2 per cent annual increase.
What the European Central Bank calls core inflation, which excludes volatile energy and unprocessed food prices, was 0.7 per cent month-on-month and 0.9 per cent year-on-year, roughly in line with market expectations.
The ECB, which wants to keep annual inflation just below 2 per cent over the medium term, keenly watches core inflation to see how energy and food price shocks affect wider price growth.
Eurostat also said the euro zone swung into an unexpected trade surplus of €2.6 billion in February from a downwardly revised 9 billion euro deficit in January, thanks to a 10 per cent year-on-year jump in exports and only a 6 percent rise in imports, not adjusted for seasonal swings.
Adjusted for seasonality, the surplus in February was even higher - €3.3 billion, up from 1.9 billion in January - as exports rose 2.7 per cent on the month and imports gained only 1.5 per cent.
The sharp rise in exports points to a rebound in global demand for euro zone goods. The increase in imports also shows there is more domestic demand, which could bode well for prospects ofeconomic recovery.
Reuters