Don't look too much into the Eurozone's inflation dip in April

Another reminder of the presence of the Easter Bunny

It's certainly no coincidence as highlighted before that an earlier Easter tends to distort inflation patterns in the Eurozone. The core reading fell to 0.7% from 1.0%, although estimates were for a reading of 0.9%.

If you see the chart above, you can see a significant decline for the year of 2013 and 2016 - when Easter falls on an early date. So, a -0.3% dip this year isn't really an anomaly.

The Saxony report from Germany offered a glimpse of the Easter seasonality, which showed the biggest decliners in price over the month of April being passenger air transport, package holidays, and hotels - all travel-related areas that coincide with the Easter holiday.

As I said before, it is tough to attribute any significant decline to other underlying causes until we get a clearer picture - and that will only come in next month's report.