Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Euro zone economy accelerates, but prices fall more than expected

Published 04/29/2016, 05:18 AM
Updated 04/29/2016, 05:18 AM
© Reuters. File photo of cook Christian Santana checking to see if more churros are needed during breakfast time at the Chocolate Shop San Gines in Madrid

BRUSSELS (Reuters) - The euro zone economy accelerated more than expected in the first quarter, preliminary data showed on Friday, but consumer prices also dropped by more than forecast in April because of a steep fall in energy costs.

The European Union's statistics office Eurostat said gross domestic product in the 19 countries sharing the euro rose 0.6 percent quarter-on-quarter in the January-March period, up from 0.3 percent growth in the previous three months.

Economic polled by Reuters had expected quarterly growth of 0.4 percent. On a year-on-year basis, euro zone GDP rose 1.6 percent in the first quarter, beating expectations of a 1.4 percent increase.

Eurostat does not provide a detailed breakdown of the numbers in its first GDP estimate.

Meanwhile, consumer prices fell 0.2 percent year-on-year in April, Eurostat said, after holding flat in March, a steeper drop than the consensus forecast for a 0.1 percent decline.

Falling energy prices, which tumbled 8.6 percent year-on-year in April, were the main drag on the overall index, while unprocessed food was the main positive, rising 1.2 percent.

Without those two most volatile items, in a measure that the European Central Bank calls core inflation -- consumer prices rose 0.8 percent year-on-year in April, less than the 1 percent increase in March.

The ECB wants to keep headline inflation below, but close to 2 percent over the medium term and has been buying government bonds on the market since last year to inject more cash into the economy and make prices grow faster.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.