Europe is making strides to combat inflation, nearly reaching pre-pandemic levels. Eurozone prices declined for the third straight month, reaching 2.4% in March (down from 2.6% the month prior). Core inflation also dropped to 2.9% — the first time it’s fallen below 3% since the beginning of Russia’s invasion of Ukraine.

• Reuters polled economists late last month, and 90% anticipate the European Central Bank will delay rate cuts until June. While this data could mean those cuts happen sooner, some figures raise concerns.
• For instance, services inflation remains stubbornly high at 4.0% year-over-year (YoY) — likely due to steady wage growth in the EU over the past year.

It’s not a competition, but… Meanwhile, in the US, inflation is moving in the opposite direction. Housing costs, which carry more weight in America’s inflation measurement, may be a contributing factor, particularly as they’ve been shaky this year. But culling inflation has cost the EU’s economic growth — with the bloc failing to grow in the final quarter of 2023, while US GDP surged 3.4% YoY.