Eurozone inflation declines to 2.6%

Eurozone inflation has declined to 2.6%, down slightly from 2.7% in March, but still well above the ECB's 2% target.

The latest release from the European Central Bank means inflation has been above target for 17 consecutive month. Meanwhile, the ECB also reported growth of eurozone bank lending to the private sector fell significantly in March. Eurozone bank lending to the private sector grew at an annual rate of just 0.6% last month, the slowest pace since June 2010. The decline in private bank lending has effectively ruled out the ECB drawing up any new measures to inject more liquidity into the market to stimulate growth. Mario Draghi, the ECB's president, last week warned inflation would ...