- Peter Vanden Houte, an economist at ING
Inflation in the euro zone rose by more than expected in April, mounting pressure on the European Central Bank to take action against price pressures. Consumer prices increased 2.6 per cent from the same period last year, said the European statistical office on Monday.
"Stubborn inflation will only add to household's financial problems in the nearer term and supports the view that the eurozone economy will fall deeper into recession," said Ben May, European economist at Capital Economics in London.
"The likelihood of inflation falling below 2 percent in the short run remains low, putting the ECB in a difficult situation," Peter Vanden Houte, an economist at ING, said. "As the German members of the ECB's governing council have been warning of inflationary pressures potentially building up, a further rate cut seems out of the question."
© Dukascopy Bank