Eurozone: Inflation falls in April
May 3, 2018
According to preliminary data released by Eurostat on 3 May, harmonized inflation came in at 1.2% in April, down from March’s 1.3% reading. The result was below market analysts’ expectations of unchanged inflation at 1.3%. As a result, inflation now sits further from the European Central Bank’s target rate of just under 2.0%.
According to Eurostat, the easing in price pressures was chiefly due to a softer increase in prices for services compared with March. Meanwhile, price pressures for energy rose, along with price pressures for food, alcohol and tobacco products. Meanwhile, core inflation—which strips out the volatile prices of energy and unprocessed foods—also fell, decreasing from March’s 1.3% to 1.1% in April. Month-on-month price variations and a more detailed set of data will be released on 16 May.
Eurozone Inflation Forecast
FocusEconomics Consensus Forecast participants see inflation in the Euro area averaging 1.5% in 2018, which is unchanged from last month’s forecast. For 2019, panelists expect inflation to average 1.6%.