Eurozone April Inflation Rate Confirmed at 5-Month High

The annual inflation rate in the Euro Area rose to 1.7 percent in April 2019 from 1.4 percent in the previous month and in line with the preliminary estimate and market expectations, final data showed. It is the highest inflation rate in five months, mainly driven by cost of services.

Prices went up further for services (1.9 percent from 1.1 percent in March); and non-energy industrial goods (0.2 percent from 0.1 percent). On the other hand, cost of food, alcohol & tobacco eased to 1.5 percent from 1.8 percent in March, namely processed food, alcohol & tobacco (1.7 percent from 2.0 percent) and unprocessed food (0.8 percent from 1.1 percent). Also, inflation was steady for energy (at 5.3 percent, the same as in March). 

Among Eurozone's largest economies, the highest annual rate was registered in Germany (2.1 percent), followed by Spain (1.6 percent), France (1.5 percent) and Italy (1.1 percent).

The annual core inflation, which excludes volatile prices of energy, food, alcohol & tobacco and at which the ECB looks in its policy decisions, accelerated to 1.3 percent in April from 0.8 percent in the prior month and above market consensus of 1.2 percent.

On a monthly basis, consumer prices increased 0.7 percent, matching market forecasts, boosted by services (1.0 percent), non-energy industrial goods (0.8 percent), and energy (0.7 percent) while prices of food, alcohol & tobacco were flat.

 Eurozone April Inflation Rate Confirmed at 5-Month High

Eurostat | Stefanie Moya |
5/17/2019 9:15:19 AM