Eurozone economy accelerates, though prices drop more than expected
On Friday, the eurozone economy demonstrated decent acceleration in the first quarter. However, consumer prices sank more than expected due to an abrupt slump in energy costs.
Eurostat, the EU’s statistics office reported GDP in the 19 countries, sharing the common currencies, surged 0.6% quarter-on-quarter from January to March, up from 0.3% surge for the previous three months.
Surveyed by Reuters economic analysts had expected quarterly growth of about 0.4%. The eurozone’s GDP soared 1.6% on a year-on-year basis in the first quarter, thus ruining expectations of a 1.4% surge. Eurostat doesn’t give a detailed breakdown of the numbers in the first GDP estimate.
At the same time, in April consumer prices sank 0.2% year-on-year after April’s flat, a steeper descend than the expected 0.1% slump.
Dropping energy prices, tumbling 8.6% year-on-year in April, appeared to be the primary drag on the overall index, while unprocessed food remained positive, surging 1.2%.