(fxcue news) - Euro area inflation eased in March largely due to a slowdown in the services costs growth and strengthened the calls for further interest rate cuts from the European Central Bank. The harmonized index of consumer prices rose 2.2 percent year-on-year in March, which was slightly slower than the 2.3 percent rise in February, flash data from Eurostat showed on Tuesday. The rate matched expectations. Core inflation that excludes prices of food, alcohol and tobacco, slowed to 2.4 percent from 2.6 percent in the previous month. Inflation was expected to slow marginally to 2.5 percent. Data showed that growth in food prices increased to 2.9 percent from 2.7 percent. Meanwhile, prices of energy fell 0.7 percent, reversing February's 0.2 percent gain. Services costs rose at a slower pace of 3.4 percent after a 3.7 percent increase. At the same time, growth in non-energy industrial goods prices held steady at 0.6 percent. On a monthly basis, the HICP logged an increase of 0.6 percent in March. Final data is due on April 16. The recent data support the view that the ECB will cut interest rates by 25 basis points again later this month, Capital Economics economist Jack Allen-Reynolds said. In March, the ECB cut interest rates for a fifth policy session in a row and lowered the deposit rate by 25 basis points to 2.5 percent, which is its lowest level since February 2023. The bank had signaled a pause in the easing cycle as policy was deemed less restrictive. Germany's harmonized inflation eased to 2.3 percent in March from 2.6 percent in February and French inflation held steady at 0.9 percent. Spain's inflation fell to a five-month low of 2.2 percent in March. On the other hand, Italy's inflation accelerated to 2.1 percent from 1.7 percent. Separate official data showed that the euro area unemployment rate dropped to 6.1 percent from 6.2 percent in January. In the same period last year, the rate was 6.5 percent. Unemployment decreased by 70,000 from the prior month. The number of people out of work totaled 10.580 million. The youth unemployment rate climbed to 14.2 percent in February from 14.1 percent in the previous month.