1134 GMT - Washington's trade tariffs will ensure eurozone inflation continues to ease, Capital Economics' Jack Allen-Reynolds writes in a note after headline annual inflation fell to 2.2% last month, according to confirmatory figures released Wednesday. Some underlying pressures remain on prices, notably in services, Allen-Reynolds says. But that will ease as businesses reduce costs and wage growth slows, he says. And the escalation of U.S. tariffs will reinforce the trend toward slower price rises, Allen-Reynolds adds." As well as pushing energy prices down, aggregate demand will be weaker and China might redirect its low-cost exports to other markets, including Europe," he says. (joshua.kirby@wsj.com; @joshualeokirby)

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April 16, 2025 07:35 ET (11:35 GMT)

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