Euro-area inflation unexpectedly weakened in April, a setback for European Central Bank policy makers as they edge toward paring back their unconventional stimulus, according to zerohedge.com.
The core Consumer Price Index released by Eurostat is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services excluding the volatile components like food, energy, alcohol and tobacco. The core CPI is a key indicator to measure inflation and changes in purchasing trends.
The Euro Zone CPI released by the Eurostat captures the changes in the price of goods and services. The CPI is a significant way to measure changes in purchasing trends and inflation in the Euro Zone.
Consumer-price growth slowed to 1.2 percent (it was expected 1.3 percent measure), while the core rate, which excludes highly volatile items like food, dropped to just 0.7 percent (it was expected 0.9 percent measure), the weakest in more than a year. Both readings were lower than economists had forecast.
While inflation isn’t where policy makers would like, and the economy has cooled this year, President Mario Draghi has said the ECB is confident price growth will move toward its target of close to 2 percent in the medium term. Still, his caution about the outlook was apparent after last week’s policy meeting in Frankfurt, when he said that measures of underlying inflation haven’t showed concrete evidence of improvement, according to zerohedge.com.