Inflation Down in German States, Pointing to National Decline

• Inflation fell in six economically important German states in March, preliminary data showed on Tuesday, suggesting that national inflation will continue its downward trajectory.

• "The combined message from the data in Germany, France, Italy and Spain is that the eurozone headline harmonized inflation will undershoot the consensus this week significantly," said Claus Vistesen, chief eurozone economist at Pantheon Macroeconomics.

• Economists polled by Reuters forecast Germany's harmonized inflation at 2.4% in March, down from 2.7% in February.

• German companies' price expectations also fell in March to their lowest in three years, with inflation set to fall below the European Central Bank's target in the coming months, the Ifo Institute said on Tuesday.

• Euro zone inflation is expected at 2.6% in March, unchanged from the previous month, a Reuters poll of economists shows.

• ECB chief Christine Lagarde said in March the eurozone's inflation rate was set to keep falling, while economic growth would start picking up during the year.

• A growing number of ECB policymakers have supported rate cuts, with a June meeting shaping up as the most likely time for action, although there is also a meeting set for this month.

 (Source: Reuters)