Euro area annual inflation expected to be 1.7% in April 2019, up from 1.4% in March

Euro area annual inflation is expected to be 1.7% in April 2019, up from 1.4% in March according to a flash estimate from Eurostat, the statistical office of the European Union. Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in April (5.4%, compared with 5.3% in March), followed by services (1.9%, compared with 1.1% in March), food, alcohol and tobacco (1.5%, compared with 1.8% in March) and non-energy industrial goods (0.2%, compared with 0.1% in March).

Meanwhile, in March 2019, compared with February 2019, industrial producer prices fell by -0.1% in the euro area (EA19), by -1.2% in Cyprus and rose by 0.1% in the EU28. In February 2019, prices increased by 0.1% in the euro area and Cyprus, and by 0.2% in the EU28. In March 2019, compared with March 2018, industrial producer prices rose by 2.9% in the euro area, by 3.1% in the EU28 and by 4.3% in Cyprus.

Industrial producer prices in the euro area in March 2019, compared with February 2019, fell by 0.5% for the energy sector, remained stable for non-durable consumer goods, and rose by 0.1% for both capital goods and durable consumer goods and by 0.2% for intermediate goods. Prices in total industry excluding energy remained stable. In the EU28, industrial producer prices rose by 0.2% for intermediate goods, by 0.1% for capital goods, durable consumer goods and non-durable consumer goods, while prices in the energy sector remained stable. Prices in total industry excluding energy rose by 0.2%. The largest decreases in industrial producer prices were recorded in Denmark (-1.6%), Cyprus (-1.2%) and Estonia (-0.8%), while the highest increases were observed in Greece (+1.1%), Luxembourg and Romania (both +0.8%).

Industrial producer prices in the euro area in March 2019, compared with March 2018, rose by 7.8% in the energy sector, by 1.5% for both capital goods and durable consumer goods, by 1.3% for intermediate goods and by 0.1% for non-durable consumer goods. Prices in total industry excluding energy rose by 1.0%. In the EU28, industrial producer prices rose by 8.2% in the energy sector, by 1.7% for intermediate goods, by 1.6% for durable consumer goods, by 1.5% for capital goods and by 0.5% for non-durable consumer goods. Prices in total industry excluding energy rose by 1.3%. Industrial producer prices rose in all Member States, with the highest increases recorded in Romania (+6.7%), Belgium (+6.4%), Latvia (+6.1%) and Hungary (+5.5%).

SOURCE: CYPRUS NEWS AGENCY