Eurozone exits deflation

BRUSSELS: The Eurozone exited four months of deflation in April, official data showed on Thursday, reversing a dangerous bout of declining prices and reviving hopes of economic recovery in Europe.
Inflation in the 19-nation single currency bloc hit zero percent in April, after a drop of 0.1 percent in March, with low energy costs still impacting the cost of living, the EU statistics agency Eurostat said.
The news will be welcomed at the European Central Bank, which in March launched a historic round of monetary stimulus to fight falling prices in the Eurozone.
Economists fear deflation almost as much as rampant inflation because shoppers tend to put off purchases in the belief they may be cheaper in the future. This leads to a spiral of ever weaker demand, slowing the economy and pushing up unemployment.
Unemployment remained stable at 11.3 percent in March compared to February, Eurostat said, which was down from 11.7 percent a year before.