Annual inflation in the Euro area fell to 2.2% in March. The European Statistics Office (Eurostat) released the preliminary inflation data for March in the Euro area. According to the data, the annual Consumer Price Index (CPI) in February, which was 2.3%, dropped to 2.2% in March. The CPI for March was 0.6% on a monthly basis. Market expectations were also pointing towards an annual inflation of 2.2% in March. In March, core inflation in the Euro area stood at 2.4% on an annual basis. Looking at the main components of inflation, the highest price increase was observed in the service sector at 3.4%. This was followed by food, alcohol, and tobacco products at 2.9%, non-energy industrial products at 0.6%, and energy products at -0.7%. Inflation in March was 4.3% in Estonia, Slovakia, and Croatia, and 3.6% in Belgium, Latvia, and Lithuania. Annual inflation was at 2.3% in Germany, 2.2% in Spain, 2.1% in Italy, and 0.9% in France. On the other hand, the European Central Bank (ECB) is targeting inflation to be at 2% in the medium term.