Eurozone consumer price index rose in line with forecasts in April, unemployment rate unexpectedly fell

According to a flash estimate from Eurostat, euro area annual inflation is expected to be 1.6% in April 2021, up from 1.3% in March. The core figures eased to 0.8%% Y/Y in April when compared to 0.9% expectations and 0.9% booked in March.

Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in April (10.3%, compared with 4.3% in March), followed by services (0.9%, compared with 1.3% in March), food, alcohol & tobacco (0.7%, compared with 1.1% in March) and non-energy industrial goods (0.5%, compared with 0.3% in March).

Eurostat also reported that in March 2021, the euro area seasonally adjusted unemployment rate was 8.1%, down from 8.2% in February 2021 and up from 7.1% in March 2020. The unemployment rate was expected to be 8.3%. The EU unemployment rate was 7.3% in March 2021, also down from 7.4% in February 2021 and up from 6.4% in March 2020.

Eurostat estimates that 15.520 million men and women in the EU, of whom 13.166 million in the euro area, were unemployed in March 2021. Compared with February 2021, the number of persons unemployed decreased by 237 000 in the EU and by 209 000 in the euro area. Compared with March 2020, unemployment rose by 2.019 million in the EU and by 1.614 million in the euro area.