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World Business

Eurozone inflation rises slightly to 1.5% in April

(Xinhua)
Updated: 2010-05-01 14:16
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BRUSSELS: Annual inflation in the euro zone rose slightly to 1.5 percent in April, the highest level since December 2008, the European Union (EU)'s statistics bureau Eurostat estimated on Friday.

It was up from 1.4 percent registered in March but stayed well below the two-percent ceiling preferred by the European Central Bank (ECB) to maintain price stability.

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The Frankfurt-based ECB was widely expected to keep its benchmark interest rate at a record low level of one percent in the coming months as inflation pressure remains subdued.

Analysts warned that a spreading Greek debt crisis is curbing an economic recovery and may lead to higher inflation or government defaults.

Eurostat did not give details of the components of the inflation rise in the preliminary estimate. It was scheduled to release an updated analysis on May 18.

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