In the eurozone inflation slightly increased last month from 1.9% to 2%.
This was on target for the European Central Bank’s (ECB).
Food alcohol and tobacco prices rose to 3.1% and services inflation is estimated to be the largest increases.
ECB’s chief Christine Lagarde warned during their Forum on Central Banking in Portugal, “The world ahead is more uncertain – and that uncertainty is likely to make inflation more volatile.”
While a stronger euro and lower inflation will offer comfort to policymakers, underlying risks remain,” said professor Joe Nellis, economic adviser at accountancy and advisory firm MHA.
The ECB must continue to walk a fine line between supporting economic growth across the eurozone and maintaining a guard against the possibility of another wave of inflation – especially stemming from volatile energy markets, ongoing global trade tensions and service-sector wage pressures.
