Preliminary consumer price data for March indicates differing inflation trends in Germany and Italy. Germany's inflation eased to 2.2%, the lowest since November 2024, driven by a slowdown in services and energy prices. In contrast, Italy's inflation rose unexpectedly to 2.0%, influenced by higher energy and food costs. The divergent trends are affecting economists' expectations for the eurozone, with projections for headline inflation to slow to 2.2%. European markets reacted negatively, particularly in Italy and among banks and automakers.