French CPI for March comes in lower than expected

It came in at 2.3% compared to 3% for February. (Markets expected 2.6%). Here is the chart:

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The cost of fresh food and services actually went negative.

Meanwhile Italian CPI for March came in at 1.3%, well below the European Central Bank's target of 2%.

All eyes are now on Germany. Their CPI for Feb was 2.7%. If their CPI for March also drops sharply, as we have seen in France and Italy, the European Central Bank will come under considerable pressure to cut interest rates in their April meeting. The Swiss National Bank already cut interest rates last week.