Eurozone Inflation Jumps, but is it just Timing Distortions?
28 April 2017 by News DeskInflation in the Eurozone escalated in April, reaching the European Central Bank’s (ECB) target. The figures showed inflation attaining 1.9%, climbing from March’s 1.5%, but remaining a shade lower than the four-year high witnessed in February of 2.0%.
However, not everyone saw it as a sign that inflation would remain higher. Markit chief economist Howard Archer commented: ‘The April/March swings in Eurozone consumer price inflation – both the headline rate and the core rate – were influenced substantially by pricing distortions, resulting from the fact that Easter occurred in mid-April in 2017 compared to late March in 2016.’
In Thursday’s European session markets were met with dovish ECB minutes and Archer suggests that it’s ‘highly unlikely’ that the central bank will read into April’s figure and instead put it down to timing distortions.
ECB President Mario Draghi is keeping stimulus untouched at present, despite some nations, such as Germany, calling for change.
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