AFP, Brussels

The eurozone’s annual rate of inflation dipped further than predicted in March, official data showed Wednesday, spurring hope that the European Central Bank will cut interest rates in June.

Consumer price rises in the single currency area slowed to 2.4 percent, from 2.6 percent in February, the EU’s statistics agency said.

Analysts surveyed by FactSet had predicted inflation would remain stable at 2.6 percent while economists asked by Bloomberg expected a smaller drop to 2.5 percent.

The figure is getting closer to the ECB’s two-percent target, which will make the case for cutting rates in June stronger, but analysts do not expect a cut at the next monetary policy meeting on April 11.