Euro area annual inflation is expected to be down to an average of 0.5%.
The rate is the same as it was in March, which was the lowest since the worst months of the financial crisis in 2009.
Eurostat’s estimate comes at the same time as reports of a downturn in manufacturing in nearly all of the eurozone countries.
Country breakdown is not yet available, so no figure for Portugal is available but it is expected to be in the region of -0.10% in April. The cost of food and non-alcoholic drinks were down, but costs were up in alcohol, housing, water, electricity, gas and other fuels. Worst hit was the Lisbon region.
The European Central Bank’s target for inflation is just under 2%.
The disappointing news has led economists to believe that the Bank will have to cut interest rates further to a new historic low in order to spur growth and stave off deflation.
The key interest rates have been held steady since November.
Deflation could result in falling growth but rising unemployment.
Low inflation is feared to be an impediment to the peripheral countries in trying to restore their competitiveness and to control public debt.
Inflation in the 18-nation eurozone has fallen steadily in the past year, reflecting weak demand.
