020 7898 0500The German and eurozone inflation rates for April were released yesterday and both duly came in as expected. Year-on-year, German inflation dropped from 1.5% to 1.4%, while the eurozone’s dropped from 1.3% to 1.2%. This takes inflation even further away from the ECB’s 2% target rate, but is good news for consumers.
The euro lost ground against sterling and the dollar to continue what has been a miserable couple of weeks for the single currency. Still, there is every chance that a weakened euro, especially against the dollar, could help boost export growth. Evidence of a slowing economy across Germany and the eurozone has given investors cause for concern and while the economy is still in decent shape, it does raise the question of whether economic projections made at the start of the year were a little too optimistic.
Today’s only release of note is the construction output figures for March. They are expected to dramatically increase from 0.4% to 2.2% and it will be interesting to see if that forecast is accurate.
