A fascinating paradox has surfaced in the March economic data for the Eurozone. Observers are justifiably directing their primary attention toward headline inflation. This overall rate experienced a substantial climb, rising from 1.9% in February up to 2.5%. Because of this upward shift, there is a strong probability that cost-push inflation will eventually trigger a spillover effect into core prices. Interestingly, the statistics published this morning reveal a contrasting trend in underlying costs. Core inflation has actually cooled down to a level of 2.3%. Alongside this, the historically persistent services sector also demonstrated a slowdown, dropping to 3.2% from its previous mark of 3.4%.

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