Brussels | Fri Apr 02, 2011 10 am
Brussels (Reuters)-inflation in the euro area rose even more over the destination of the European Central Bank in April, the chances rise of interest rates in June, despite the weakening of the economic, to respond to the demand of the household.
Inflation in 17 countries with the euro rose to a level of 2.8 percent this year, the year this month from 2.7% in the month before, the highest level since October 2010, when it was 3.2 percent.
Consensus expectations for a flat reading was compared to March ahead of the meeting of the European Central Bank interest rates next Thursday. Analysts said the numbers picked up the odds in the attic in in June.
"Although we expect a growth rate of the July meeting, the balance of risks to move previous slant type," said Aline Schuiling, Senior Economist at ABN AMRO.
The United States raised the interest rate on the main record weekly of 1.0% to 1.25% in April, concerned about the impact on consumer prices rising costs of energy and food.
"Upside surprise in our forecast may be stronger than expected due to the influence of the late Easter, which means that core inflation was probably a touch stronger than we thought," said Marco Valli, Economist at UniCredit.
"We see inflation hover around the current level for a while, with additional acceleration to 3 percent probably towards the end of the summer".
Other data this month, however, suggested the euro zone's growth figures in Germany, Spain, the biggest economy in Europe's debt crisis threat, showed unemployment soaring, retail sales draft.
Monthly survey of the European Commission showed the euro zone economic answer as a whole fell for the second consecutive month in April, from 106.2 to 107.3 in March, below market expectations of a decline to 107.0.
"The combination of high oil prices, strong euro finance and monetary conventions, and tightening the economic atmosphere in the region began to dent the euro," said Martin van Vliet, Economist-ING.
The answer was through all sectors of the economy except for construction, with the most stable consumer optimism to 11.6 from-10.6 in March.
No increase in the loan
Data also showed that in the annual growth rate of loans to the private sector to a single currency in the region slowed in March, bucking expectations increase, but the M3 and accelerated growth.
Belgium, a bellwether for the euro area economy, reporting faster than expected first quarter economic growth of 1% bbrbon quarter, against an average of 0.6 percent expected by economists polled by Reuters.
"Monetary data continue to point to a modest recovery in the euro area and loan growth," said Christoph Balz, an economist at Commerzbank.
"While the data itself is not a risk to price stability requires reverse tightening monetary, are further proof that the economic situation has changed significantly since 2009--and that is why the United States think more suited to low interest rates.
GDP data for the entire euro zone is on 13 May.
Further evidence of the weakening of household demand was seen in the retail sales data.
Sales in Germany fell in March, the expectations of an increase as derisive to consumers to buy supplies and less during the month when the inflation and the threshold of 100 percent.
Designed for consumer price rises, sales declined by 2.1% in, and 3.5 percent in the year.
Drop in demand of the consumers was bold more peripheral countries euro "," wishing to return and win public confidence in the market there with a difficult austerity measures.
Sales in Spain fell 8.6 percent this year, a year in March, Greece is 10.6% in February.
Consumer inflation expectations in the euro area, which has been falling rapidly since November 2010, ends slightly lower to 30.7 from 19.1. Selling price expectations between manufacturers, an increase since August 2010, fell more than 13.4 mark them from 24.4.
Business climate indicator for the European Commission, which indicates the stage of the business cycle, also fell for the second consecutive month, 1.28 points from 1.43 in March.
"However, the current level of the indicator stays close to the historic peaks, suggesting that the recovery will continue in the coming months," said the Commission.
Eurostat data showed that euro zone unemployment held steady at 9.9% of the workforce in March.
(Additional reporting by bureaux Brussels, Madrid, Berlin, Frankfurt, Athens; editing by Rex Merrifield , Patrick Graham)
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