Euro Zone Consumer Price Index - Economic Data Preview

The final revision of the [B]Euro Zone Consumer Price Index[/B] is expected to confirm the annual inflation rate slowed to 0.6% in the year to March, the lowest since the introduction of the Euro. A survey of economists conducted by Bloomberg suggests deepening recession will see the currency bloc’s economy will shrink by a full -3.0% this year, threatening to put inflation into negative territory and amplify the current downturn as expectations of falling prices encourage consumers and businesses to wait for the best possible bargain, perpetually putting off spending and investment. Despite the dour outlook, the European Central Bank cut interest rates less than economists expected earlier this month, although bank president Trichet did say that rates had not reached “the lowest limit” and revealed that “the Governing Council intends to decide on further non-standard measures at our next monetary policy meeting”.