In the first quarter of the year, euro area real GDP declined further, by 0.3 per cent, to stand 5.1 per cent below its pre-pandemic level of the fourth quarter of 2019. Business and consumer surveys and high-frequency indicators point to a sizeable improvement in activity in the second quarter of this year.
Domestic petrol prices at the end of 2015 were 8 percent lower than a year ago, reducing CPI inflation by 0.4 percentage points. In addition, the Government’s decision to reduce motor vehicle levies has taken 0.3 percentage points off the CPI. •  Annual core inflation, at 1.6 percent, is consistent with the target range.