Infinitesimal Inflation

While inflation here appears to be rising, albeit slowly, in the Eurozone prices are falling. Despite rising global energy prices, April Eurozone inflation was -0.2% Y-o-Y with the YTD inflation also negative. Worse, the culprit was a decline in the price of services from 1.4% in March to 0.9% in April. Moreover, the core inflation rate (which excludes food and energy) fell from 1% in March to 0.7% in April.