ECB's Decision Influenced by French and Italian Inflation

The recent inflation data revealed that French inflation dropped below 3% for the first time in 2 1/2 years, while Italy reported a lower-than-expected reading. This has influenced the European Central Bank's inclination towards cutting interest rates. In March, consumer prices in France increased by 2.4% from a year earlier, a significant slowdown from the previous month's 3.2% gain and below economists' forecast of 2.8%. These developments are expected to play a pivotal role in the ECB's future decisions regarding interest rates.