Euro zone inflation unexpectedly slips in April

However, prices of services were only 1.0 percent higher, compared with a 1.5 percent increase in March Core inflation measures of inflation, which the ECB also looks to as a guide, were also below expectations.

The measure that strips out the volatile prices of energy and unprocessed food, was 1.1 percent year-on-year in April from 1.3 percent in March and against an expected 1.2 percent rate.

The core inflation measure that many market economists look at, which also excludes the prices of alcohol and tobacco, also slipped to 0.7 percent from 1.0 percent in March. Economists had forecast it would be 0.9 percent.

Eurostat’s flash estimate for the month does not include a monthly calculation.

Separately on Wednesday, Eurostat reported that prices at factory gates in the euro zone rose 0.1 percent in March from February and by 2.1 percent year-on-year. Compared with a year earlier, energy prices were up the most.

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