Annual Inflation Minus 0.2% in Both Euro Area and EU

The latest Eurostat figures disclosed that annual inflation was minus 0.2% for April, falling from 0% that was recorded in March.

The figures were also worse compared to the corresponding month a year ago, as inflation was also found to be at the zero percent mark.

Annual inflation, where the Harmonised Consumer Prices Index, measures information between a month and the same month a year ago, found that negative inflation rates were found in 17 countries.

The lowest annual rates were  in Romania , where prices fell by a minus 2.6%, Bulgaria minus 2.5%, and Cyprus, with a price decline of 2.1%.

Whereas the highest inflation rates were reached in Belgium, with a positive 1.5%, and Sweden 1%.

Restaurants and cafes provided the most upward pressure on prices, with increases of 0.13% , rents by an increase of 0.08%, and tobacco by 0.05%.

This was offset by transport fuels, which fell by 0.54%, heating oil 0.22%,  and gas by a minus 0.13%.

The European Central Bank (ECB) will disappointed by the data, as boosting inflation is a major priority.

In March, their quantitative easing programme was increased to 80 billion euros per month, and bank deposit rates were reduced to a negative 0.4%, to entice banks to lend.

Despite the latest price decline, it is far too early to write off the ECB’s attempts to boost inflation just yet.

UK and Germany Report Mixed Employment Figures

The latest employment data from the German Federal Statistical Office has revealed that there was 533,000 more people employed for the first quarter this year, compared with the same quarter last year.

Growth in the services sector was the main driver of the increased employment figures.

Within the sector, the largest employment gains were found in public services, education and health, with an increase of 177,000.

There were also notable increases in business services, with a rise of 150,000 people, a leap of  2.7%.

And trade, transport, accommodation and food services, where there was a 1.5%  expansion, resulting in 144,000 more people being employed in these industries.

Although compared to the previous quarter, the news was not so positive, as employment figures were reduced by 384,000, a fall of 0.9%.

Decreases in vacancies available is a usual occurrence in the first three months of the year.

Due to the mild winter this year, the seasonal fall was not quite as deep as other years, the average amount of job losses for the same time period over the past five years, totalled 462,000.

In the UK, official figures declared that unemployment figures quarter on quarter had remained stable.

The data revealed that there was 1.69 million out of work, a fall of 2000 from between October and January last year, therefore the unemployment figure was unchanged at 5.1%.

In contrast to the same period last year, the figures were more positive, as there was 139,000 fewer without a job.

There were 31.58 million people in work, a total of 44,000 more than for October to December 2015, and 409,000 more than for a year earlier.

The numbers of those working full time reached just over 23 million, an increase of 328,000 more than a year earlier, while the amount of part time positions climbed to 8.46 million , a boost of 81,000.

Average weekly earnings for employees spiralled upwards by 2%, including bonuses, and by 2.1% excluding bonuses compared to twelve months ago.