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MNI: EUROZONE DATA: Flash HICP (Apr 2019)............>

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MNI: EUROZONE DATA: Flash HICP (Apr 2019)
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- EZ inflation reached its highest level since Nov, rising to 1.7% y/y (vs 1.6%
mkt expectation) from 1.4% in Mar
- The core rate jumped 0.4pp to 1.2% y/y - its strongest since October,
outpacing market expectations of a 0.2pp rise from Feb's 0.8%
- The strong rise in core inflation was driven by services, where price growth
accelerated to 1.9% from 1.1% in Mar
- While a detailed breakdown is not yet available, this reflects price hikes for
tourism-related services, owing to the timing of Easter this year
- In terms of headline inflation, energy remains the most significant driver,
with prices up 5.4% y/y in Apr (accelerating slightly from 5.3% in Mar)
- Both headline & core are set to recede in May as the Easter effect reverses...
- ... and are on course to remain relatively low & stable this year...
- ... as demand weakness constrains pricing power while energy base effects
should weigh on the headline rate

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