Eurozone April Inflation Rate Weaker than Expected


The Eurozone consumer price inflation is expected to slow to 1.2 percent year-on-year in April 2018 from the previous month's 1.3 percent, and below market expectations of 1.3 percent. Prices of services should rise at a softer pace.

Looking at the main components of euro area inflation, services inflation should soften to 1 percent in April from 1.5 percent in the previous month. On the other hand, prices are expected to rise at a faster pace for: food, alcohol and tobacco (2.5 percent vs 2.1 percent), of which processed food, alcohol and tobacco (3.1 percent vs 2.9 percent) and unprocessed food (1.5 percent vs 0.8 percent); energy (2.5 percent vs 2 percent); and non-energy industrial goods (0.3 percent vs 0.2 percent).

Annual core inflation, which excludes volatile prices of energy and unprocessed food and tobacco and at which the ECB looks in its policy decisions, is expected to fall to 0.7 percent in April from 1 percent in March, also missing market consensus of 0.9 percent.

Eurozone April Inflation Rate Weaker than Expected


Eurostat | Joana Ferreira | joana.ferreira@tradingeconomics.com
5/3/2018 9:13:40 AM