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January, 18, 2017

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Eurozone's April inflation may derail EU recovery

BRUSSELS--Eurozone inflation picked up in April but still fell short of forecasts against a background of concerns deflation could derail a very modest recovery, official data showed Wednesday.

Consumer price inflation rose to a 0.7 percent rate in April, below analyst estimates for 0.8 percent while up from the 0.5 percent in March which was the lowest since October 2009.

The Eurostat data agency said service sector prices rose 1.6 percent in April, up from 1.1 percent in March but as analysts noted, other categories were weaker.

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