Euro Area Inflation Rate Confirmed at -0.2% in April

Consumer prices in the Euro Area decreased 0.2 percent year-on-year in April of 2016, after showing no growth in the previous month and in line with preliminary estimates. The inflation rate turned negative, mainly due to lower prices of fuels, heating oil and gas.

Compared with the same month of the previous year, cost of fuels for transport (-11.7 percent), heating oil (-26 percent) and gas (-6.8 percent) fell sharply while prices of restaurants and cafés (+1.6 percent), rents (+1 percent) and tobacco (+2 percent) rose by the most.

Negative annual rates were observed in seventeen Member States. The lowest annual rates were registered in Romania (-2.6 percent), Bulgaria (-2.5 percent) and Cyprus (-2.1 percent), while the highest annual rates were recorded in Belgium (+1.5 percent) and Sweden (+1 percent). Compared with March 2016, annual inflation fell in thirteen Member States, remained stable in seven and rose in eight.

The monthly index was unchanged, following a 1.2 percent gain in March and matching market expectations. Higher prices of non-energy industrial goods (+0.6 percent) and unprocessed food (+0.5 percent) were offset by a decline in cost of services (-0.4 percent).

Euro Area Inflation Rate Confirmed at -0.2% in April

Eurostat | Joana Ferreira |
5/18/2016 10:37:12 AM