Euro Area Consumer Prices Fall 0.2% in April


Consumer prices in the Euro Area dropped 0.2 percent on the year in April of 2016, after showing no growth in the previous month, according to preliminary estimates. The figure came in worse than an expected 0.1 percent fall, as energy prices continued to weigh on inflation.

Looking at the main components of euro area inflation, energy prices are expected to decline at the same pace as in the previous month (-8.6 percent, compared with -8.7 percent in March); while, cost of services is expected to grow at a lower rate (+0.9 percent, slowing from +1.4 percent in March), followed by food, alcohol & tobacco (+0.8 percent, stable compared with March) and non-energy industrial goods (0.5 percent, stable compared with March). 

Core inflation rate, which excludes prices of energy, food, alcohol and tobacco is expected to ease to 0.7 percent compared to 1 percent in the previous month. 

Euro Area Consumer Prices Fall 0.2% in April


Eurostat | Joana Ferreira | joana.ferreira@tradingeconomics.com
4/29/2016 5:41:31 PM