🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Euro zone April inflation rises less than expected

Published 30/04/2014, 10:02

BRUSSELS (Reuters) - Euro zone inflation nudged above 2009 lows in April but fell short of economists' predictions despite increased spending at Easter, leaving the threat of deflation hanging over the European Central Bank.

Annual consumer inflation in the 18 countries sharing the euro was 0.7 percent in April, climbing from March's 0.5 percent, which was the lowest since late 2009, the EU's statistics office Eurostat said on Wednesday. Economists polled by Reuters predicted 0.8 percent in April. But both figures are still within the ECB's danger zone of below 1 percent, reflecting the poor state of the economy after a long recession and with unemployment at near-record levels.

April's reading takes inflation back to where it was in February but it is well below 1.2 percent of April 2013. It also leaves the ECB in a difficult position when it holds its next policy meeting on May 8 because of lack of a clear up-tick in consumer prices.

While April improved because of a smaller fall in energy prices, the pace of price rises in food, alcohol and tobacco was lower than the month before, meaning Europeans are unwilling to spend while economic growth remains so fragile.

(Reporting by Robin Emmott; editing by John O'Donnell)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.