Italy, Slovenia Inflation Surges Past 2% in March

Italian inflation rose to 2.1% in March, surpassing the European Central Bank's target for the first time in 18 months, driven primarily by increases in energy and food costs. This uptick from February's 1.7% figure was higher than economists' expectations of 1.8%. The European Central Bank is facing mixed signals regarding future borrowing costs, with some officials advocating for a rate cut amid concerns about US tariffs impacting growth. The broader eurozone inflation is projected to show moderation, but ECB President Christine Lagarde emphasized the need for continued vigilance in managing prices. Meanwhile, Slovenia's inflation also increased to 2.0% in March, primarily due to food and non-alcoholic beverage price rises, while other sectors saw varied impacts on inflation rates. These trends highlight ongoing economic pressures within the region, prompting discussions on monetary policy adjustments.