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By Dr. Thomas GITZEL, Chief Economist, VP Bank Group
According to an initial estimate, the inflation rate will fall from 1.7% to 1.2%. The decline in the inflation rate is mainly due to a statistical effect because of the late Easter holiday. The consumer price index rose significantly last month, now the "Easter Festival effect" is being reversed. The April inflation rate was a runaway. The current inflation rate thus ties in with the value of 1.4% measured in March, so to speak. The inflation rate without the volatile energy and food prices (core inflation) is also rushing downwards. The core inflation rate drops from 1.3% to 0.8%.
For Mario Draghi, a falling inflation rate is advantageous in the current environment. The...
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