Euro area annual inflation in April was 0.3%, the lowest level in nearly four years, final figures from Eurostat, which revised its earlier estimate, as energy prices fell more than initially expected.
The statistics Agency of the European Union, had previously estimated that consumer prices 19 countries of the Eurozone grew by 0.4% yoy in April, but today's data showed that the consumer price index dropped to 0.3%, — the lowest level since August 2016.
General inflation confirmed the downward trend since the beginning of the year, down from 0.7% in March, 1.2% in February and 1.4% in January, which is far from the target of the European Central Bank — below but close to 2%.
The revision was caused by greater than expected drop in energy prices amid coronavirus crisis and war in oil prices between Russia and Saudi Arabia, two major oil producers.
, Eurostat said that energy prices in the bloc fell by -9,7% in April year on year, revising its previous estimate of a fall in -9,6%.
With the exception of energy prices, inflation in the bloc rose to 1.4% in April from 1.3% in March, mainly due to higher prices in supermarkets.
On a yearly basis, prices of food, alcohol and tobacco rose by 3.6% in April compared with 2.4% in March as consumers stocked up on goods during a pandemic.
In the service sector, the largest economy in the bloc, inflation in April was 1.2% compared with 1.3% in March.
Without the volatile energy and unprocessed food components, which the ECB calls core inflation, prices rose 1.1 percent annually, compared with 1.2% in March, confirming earlier estimates.
An even narrower measure of inflation which excludes prices of alcohol and tobacco, and followed by many economists of the market showed price growth of 0.9% annually against an annual growth of 1.0% in March, which corresponds to previous estimates.
In comparison with previous month, Eurostat confirmed that inflation in the Eurozone rose 0.3%.
Information-analytical Department TeleTrade