While the change in consumer price in 19 countries of eurozone was constant at zero percent in the previous month, the Eurozone annual inflation rate was at 0.0 percent in April 2015, up from -0.1 percent in March. Core CPI stayed unchanged at 0.6% year-on-year in April.
The European Central Bank (ECB) wants to keep inflation below but close to 2 percent over the medium term. In order to achieve this, the ECB begun a quantitative easing program in March to stimulate the economy and avert the risk of deflation.
With deflationary risks now apparently averted some have already started to question the duration of the ECB’s quantitative easing program, which is scheduled to end in September 2016. However, President of the ECB Mario Draghi said last week that the bank will continue the program.
"While we have already seen a substantial effect of our measures on asset prices and economic confidence, what ultimately matters is that we see an equivalent effect on investment, consumption and inflation," said Draghi.
"To that effect, we will implement in full our purchase programme as announced and, in any case, until we see a sustained adjustment in the path of inflation."
After the CPI data was released the euro continued to weaken against the US dollar, due to the European Central Bank’s unexpected statement that it will increase stimulus spending in May and June.
The euro fell 1.4 per cent to a day low of $1.1159 against the dollar, the biggest single-session decline since early April.