Euro zone CPI slows to 0.5% in March

Consumer price inflation in the euro zone slowed to the weakest level since November 2009 in March, underlining concerns over the threat of deflation in the region, official preliminary data showed on Monday.

Euro zone CPI slows to 0.5% this month

In a report, Eurostat said consumer price inflation increased by a seasonally adjusted 0.5% this month, down from 0.7% in February and missing expectations for a reading of 0.6%.

The rate stands well below the European Central Bank's target of near but just under 2%.

Core CPI, which excludes food, energy, alcohol, and tobacco costs rose by a seasonally adjusted 0.8% in March, slowing from 1% in February and in line with expectations.

Following the release of the data, the euro added to losses against the U.S. dollar, with EUR/USD shedding 0.08% to trade at 1.3741, compared to 1.3749 ahead of the data.

Meanwhile, European stock markets remained higher. The Euro Stoxx 50 rose 0.2%, France’s CAC 40 added 0.1%, London’s FTSE 100picked up 0.4%, while Germany's DAX gained 0.2%.