LONDON—Unemployment in the 17 countries that share the euro rose to another high in April, while consumer price inflation remained subdued in May, a combination that adds to the pressure on the European Central Bank to focus on policies to boost growth while easing austerity measures.
The unemployment rate across the euro zone rose to 12.2% in April, the highest rate since records began in 1995 and up from 12.1% in March.
The rate was in line with expectations and confirms that consumers and businesses continue to struggle amid a prolonged period of austerity and a contracting economy.
European statistical agency Eurostat also published its flash estimate of consumer price inflation for May which rose 1.4% compared with the same month in 2012. That compares with a 1.2% gain in April, which was the lowest pace of inflation in over three years.
Given that the European Central Bank targets inflation of around 2%, the slow pace of price rises allows the ECB scope to cut interest rates again and employ further policies to stimulate growth.
Other details published Friday show the region's young people continue to bear the brunt of job cuts. The rate of unemployment among people aged 25 and under rose to a fresh record high of 24.4% in April, up from 24.3% in March.
And, the total number of employable people without a job across the euro zone also rose to a record high of 19.375 million in April from 19.280 million in March.
The continued increase in unemployment suggests continuing muted demand for goods and services together with the bleak economy outlook is making firms increasingly reluctant to employ additional staff.
The Eurocoin index, which is an early indicator of the economic performance, fell in May to -0.15 from -0.10 in April. That was the first fall in the indicator from the central bank of Italy and the Centre for Economic Policy Research since August 2012.
That was in line with the continued contraction reported in the preliminary purchasing managers' index for the euro zone and suggests the economic contraction which has so far lasted six consecutive quarters continued into the second quarter of this year.
