The economy of the bloc contracted by 0.1% between January and March, after also shrinking in the final three months of 2022,BBC reported.

Spending by households in the bloc fell by 0.3% in the first three months of 2023, and by 1% in the previous quarter, the British media reported.

Initial growth estimates had suggested that the eurozone had avoided a recession and expanded by 0.1% in the first three months of the year. But updated figures from Eurostat showed it had shrunk in the first quarter.

In economics, inflation is an increase in the general price level of goods and services in an economy.

When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money.