The annual inflation rate in the euro area in April was confirmed by Eurostat as declining to -0,2% from 0% in March. A year ago it was at 0%. The euro area is returning to a state of deflation which is judged by both the EU and the ECB as a situation of prolonged fall in prices. Even in the EU, the inflation rate in April was -0,2%, down from 0%. A year earlier it was at 0%. In Italy it was -0,4% after -0,2% in March (-0,1% a year earlier).
In April negative inflation rates were recorded in Romania (-2,6%), Bulgaria (-2,5%) and Cyprus (-2,1%). Highest rates in Belgium (1,5%) and Sweden (1%). Compared to March 2016, inflation fell in 13 states, remained stable in 7 and increased in 8.
The strongest impacts to the price increase are due to restaurants and bars (+0,13%), rentals (+0,08%) and tobacco (+0,05%), while transport fuels (-0,54 %), heating oil (-0,22%) and gas (-0,13%) had the strongest impact on the downside
The next Eurostat inflation estimate for May will be released on the 31st of this month.
