Eurozone Inflation April 2016


Eurozone consumer prices fall in April

More complete data released by Eurostat on 18 May confirmed that harmonized consumer prices—measured by the harmonized index of consumer prices—fell 0.2% in April. The result followed March’s zero growth and was in line with the preliminary estimate. Despite efforts by the European Central Bank to spur inflation, prices continue to linger in negative territory. According to Eurostat, the main contributor to April’s negative reading was energy prices, while prices for food, alcohol and tobacco were broadly stable from the previous month.

Core inflation eased from 1.0% in March to 0.7% in April. Annual average inflation was steady at March’s 0.1%. Meanwhile, on a monthly basis, harmonized consumer prices recorded zero growth in April, which followed the 1.2% increase observed in March.

Looking at the countries in the common-currency bloc, 12 of the 19 Eurozone economies showed inflation rates equal to or above the regional average. Belgium (1.5%), Malta (0.8%), and Lithuania (0.8%) were the economies with the highest rates. In contrast, Cyprus (-2.1%), Spain (-1.2%) and Latvia (-0.7%) were the economies that registered the largest annual declines in HICP consumer prices.

Among the largest economies in the Eurozone, consumer prices declined annually in France, Germany, Italy and Spain.

FocusEconomics Consensus Forecast participants see inflation in the Euro area averaging 0.3% in 2016, which is down 0.1 percentage points from last month’s forecast. For 2017, panelists expect inflation to average 1.4%.

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Eurozone Inflation Chart

Euro Inflation by country April 2016

Note: Year-on-year var. of harmonized consumer price index (HICP) in %.
Source: Eurostat

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