Inflation in the Eurozone Is Falling More Than Expected
By Marko Vidrih on The Capital
Inflation in the euro area fell even more sharply in April than expected. As the statistics office Eurostat announced in Luxembourg on Wednesday, inflation is down to 0.3%.
In March the inflation rate was 0.7 percent. In a first estimate, an increase of 0.4 percent was determined. Economists had expected confirmation of the first estimate. The monthly cost of living rose by 0.3 percent.
Above all, the energy was cheaper than in the same month of the previous year, for which 9.7 percent less had to be paid. In contrast, food became significantly more expensive. The price of unprocessed food rose on average by 7.6 percent compared to the same month last year. Services and industrial goods, on the other hand, became much more expensive. Core inflation excluding energy and food was 0.9 percent.
Inflation is thus well below the European Central Bank’s (ECB) target of just under two percent in the medium term. Experts believe that it will weaken further in the coming months due to the severe recession. However, the recent recovery in crude oil prices is likely to be supportive.
Author: Marko Vidrih
Featured image credit: Unsplash
