Services Drags on EMU Core HICP on.........>

EMU DATA: Services Drags on EMU Core HICP on Earlier Easter

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Euro area annual inflation was confirmed at 1.2% in April, down a tenth of a

percentage point from its March reading, data from Eurostat showed Wednesday.

Core HICP, which strips out energy, food, alcohol and tobacco, was also

confirmed at its flash estimate level of 0.7%, sharply lower than the 1.0%

recorded in March. The lower core result was driven by subdued growth in

services prices, largely attributed to the earlier timing of Easter this year

versus last (April 1 vs April 16). Services inflation fell to 1.0% in April,

down from 1.5% in March, and was responsible for 0.45pp of the overall change in

inflation -- markedly lower than the 0.82pp contribution made in April 2017.

Tourism, holiday packages, transport services, all typically sensitive during

Easter, would have dragged on inflation this April coming from a higher base

last year.