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FRANKFURT, Germany (AP) — Germany's statistics agency says inflation dipped to 1.6 percent in March, down from 2.2 percent in February.
The drop was seen as dampening speculation that the European Central Bank will start raising interest rates. Higher rates are aimed at controlling inflation.
The ECB has been holding its key benchmark at a record low of zero and has been buying bonds with newly printed money, policies aimed at promoting growth and bolstering inflation. The central bank says it will keep up its bond purchase stimulus at least through the end of the year and maintain rates at present levels "for an extended period." The ECB's goal is just under 2 percent annual inflation.
Figures for the 19-country eurozone are due out Friday.
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