Eurozone core inflation revised higher, headline figure confirmed at 1.5 pct

European Union's statistics office on Wednesday published Eurozone final inflation data which showed eurozone’s brief flirtation with 2 percent inflation was over. Eurostat confirmed the March's preliminary inflation reading of 1.5 percent, which was the biggest monthly price drop in over a year.

Eurozone core inflation was revised higher than initially forecast. Core inflation, which excludes volatile prices of energy and unprocessed food and which the European Central Bank (ECB) monitors closely, was revised up to 0.8 percent year-on-year in March from an earlier estimate of 0.7 percent.

The revised core inflation data may slightly strengthen hawks on ECB board for winding down monetary stimulus. That said, inflation remains below the central bank's target of inflation close but below 2 percent over the medium term. And the ECB policymakers think the current climb in inflation is not sustainable as it is underpinned by volatile factors.

With growth remaining modest and unemployment falling slowly from very high rates, ECB is likely to remain reluctant to quickly remove the stimulus they have been providing since mid-2014.

In fresh forecasts for the global economy released Tuesday, the International Monetary Fund said it expects the eurozone economy to expand at the same 1.7 percent rate this year as it did last. In 2018, it expects growth to ease to 1.6 percent.