Eurozone annual inflation edges up to 0.7% in April

EU Economy
Eurozone annual inflation edges up to 0.7% in April
By Finfacts Team
Apr 30, 2014 - 6:12 PM

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Eurozone annual inflation is expected to be 0.7% in April 2014, up from 0.5% in March, according to a flash estimate from Eurostat, the statistics office of the European Union.

Looking at the main components of Eurozone inflation, services are expected to have the highest annual rate in April (1.6%, compared with 1.1% in March), followed by food, alcohol & tobacco (0.7%, compared with 1.0% in March), non-energy industrial goods (0.1%, compared with 0.2% in March) and energy (-1.2%, compared with -2.1% in March).

Core inflation, which excludes items such as food and energy goods, for which prices are more volatile, rose to 1%, up from 0.7% in March.

The ECB's official inflation target is "below but close to" 2%.

Next week the central bank’s governing council will meet in Brussels next week but decisions on further cuts in rates and bond purchases maybe left to June which coincides with the publication of new forecasts for inflation and growth.