Inflation in the euro zone cooled in April to 3.3% from a record high of 3.6% in March, according to a first estimate today from the EU's Eurostat data agency.
Private sector economists had expected inflation to ease in April to 3.4% after hitting the March peak, driven by soaring oil and food prices.
Despite the lower rate, inflation remained far above the European Central Bank's comfort level, which it defines as close to but just below 2% on an annual basis.
Unlike some other major central banks, the Frankfurt-based ECB has so far opted not to cut interest rates in the face of weakening growth, concentrating instead on keeping a lid on inflation.
Separate figures from the European Commission showed that confidence in the European economy fell more sharply than expected in April, slumping to the lowest point since August 2005.
The commission's euro zone economic sentiment indicator slid in April to 97.1 points from 99.6 in March. Confidence was broadly weaker across all sectors of the economy, with only the outlook among consumers in the euro zone stable, though at a low level.
Separately, the commission's monthly business climate survey also painted a dismal picture, falling to the lowest point since January 2006.
Meanwhile, unemployment in the euro zone held steady in March for the third month running at a record low of 7.1% of the workforce.
The rate, which the European Union's Eurostat data agency adjusted to take seasonal variations into account, is the lowest going back to 1993.
