Annual inflation in the Eurozone is projected to hold steady at 2.2 percent in April, unchanged from March, according to a flash estimate released Friday by Eurostat, reported Xinhua.
The main driver of inflation remains the services sector, with prices rising to 3.9 percent in April, up from 3.5 percent the previous month. Inflation for food, alcohol, and tobacco also edged higher, reaching 3.0 percent compared to 2.9 percent in March.
The inflation rate for non-energy goods remained stable at 0.6 percent year-on-year, while energy prices saw a sharper decline, with inflation falling to -3.5 percent in April from -1.0 percent in March.
Among major Eurozone economies, Germany and Spain each reported an annual inflation rate of 2.2 percent, while France posted a significantly lower rate of 0.8 percent.
"Down from 2.5 percent in January to 2.2 percent in April, inflation is on track towards the European Central Bank's target, which justifies a continued careful easing of the monetary policy stance," said Bert Colijn, Chief Economist at ING.
Colijn warns that although the Eurozone's inflation remains steady at the moment, a reshaping of the global trade order remains a potential risk, while slower growth implications are set to dampen inflation.
"The degree to which global trade really changes is anyone's guess at the moment, making the medium-term outlook for inflation highly unpredictable," said Colijn.
Source: www.dailyfinland.fi
