Eurozone inflation dips in March, raising stakes for ECB

Eurozone inflation unexpectedly slowed in March, adding to the pressure on the European Central Bank (ECB) as it battles an economic slowdown which threatens to undo years of stimulus.

Headline inflation in the 19 countries sharing the euro slowed to 1.4 percent in March from 1.5 percent a month earlier, short of market expectations for a steady rate and also well below the ECB's target of almost 2 percent.
In a more worrying sign, a closely watched underlying inflation figure that excludes volatile food and energy prices, slowed to 1.0 percent, its weakest reading since April 2018.
Although wages are rising and employment is at a record high, consumer prices have repeatedly disappointed and underlying inflation remains weak, baffling policymakers and putting in doubt the central bank's ability to control prices.
ECB President Mario Draghi has long predicted a...