Eurozone inflation still in the 'danger zone'

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Eurozone inflation still in the 'danger zone'

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Inflation in the eurozone remained locked in the so-called deflation ‘danger zone’ in April – that is below 1.0 percent.

It was 0.7 percent compared with April last year, up from March’s 0.5 percent .

Consumer prices were kept low mainly by cheaper fuel for transport, as well as less expensive telecommunication services and vegetable costs. Prices for packaged holidays, tobacco and electricity rose.

Inflation remains well below the European Central Bank’s target of close to, but below 2.0 percent, but the ECB still says it sees no outright risk of deflation in the euro area.

The ECB said it remains ready to deploy all conventional and unconventional measures to fight low inflation, which is expected to stay below target until 2016.

with Reuters