Eurozone inflation drops further away from ECB's target.

As expected, eurozone inflation dropped to an annual rate of 1.7% in March from 1.8% in February, falling further away from the ECB's target of just under 2%. Given the fairly poor state of the eurozone economy, the decline in prices could provide scope for the ECB to ease monetary policy further when officials meet tomorrow, although it's not expected to cut interest rates from the current level of 0.75%.