German Inflation Unexpectedly Slows, Validating ECB Caution
- Annual rate was 1.4% in April, versus estimated 1.5%
- Draghi has said ECB must gauge nature of recent slowdown
ECB's Draghi Expects Growth to Remain Solid, Broad-Based
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German inflation unexpectedly slowed in April, validating the European Central Bank’s caution in moving extremely gradually toward withdrawing euro-area stimulus.
Price growth in the currency bloc’s largest economy cooled to 1.4 percent, defying expectations it would hold at 1.5 percent. In Italy, the third largest economy, the inflation rate dropped more than forecast this month, while Portugal’s measure also fell.