Euro Zone Inflation Eases, Strengthening Case for ECB Rate Cuts

• French inflation eased to 2.4% in March, below 3% for the first time in 2 1/2 years and less than expected • Italian inflation accelerated to 1.3% in March, but still less than the 1.5% forecast • Readings confirm trend toward lower euro zone inflation, tipping ECB toward rate cuts • Most policymakers and economists expect ECB to cut rates at June meeting • Some caution remains on services inflation and wage increases fueling prices