Economic indicators for the eurozone to be released this week are set to confirm that inflation slowed in March and that core inflation remains under control, economists said.
On Thursday, EU statistics office Eurostat is expected to confirm its preliminary estimate of 12-month inflation for March of 2.2 percent from 2.3 percent in February.
A slight easing of oil prices in March compared to February was one of the main factors behind the lower rate, economists said, and inflation on a month-on-month basis is expected to be 0.3 percent.
Economists at French investment bank Calyon suggested that the March inflation reading might even be revised down.
Core inflation excluding energy, food, alcohol and tobacco is expected to remain moderate at 1.2 percent for the third month running.
Inflation excluding energy and unprocessed food may edge up to 1.2 percent from 1.3 percent, Barclays Capital economist James Ashley said.
In other data released in Europe, producer price inflation in Germany is expected to ease slightly in March, with economists expecting a 0.3-percent month-on-month rise in the producer price index and a year-on-year increase of 5.6 percent.
Producer price inflation had been 5.9 percent in February, chiefly because of sharp rises in energy costs for companies, but energy price pressures eased slightly in March. Companies have been largely absorbing their higher energy costs without passing them on to the final consumer, reducing the impact of high oil prices on consumer price inflation.