After four worrisome months of deflation, consumer prices in the euro zone were flat in April. The improvement — a welcome sign for retailers and the overall economy — was attributed to a strengthening of energy and food prices.

This story first appeared in the May 27, 2015 issue of WWD. Subscribe Today.

The European Central Bank is working to keep prices on the rise and IHS Global Insight expects increases of 1 percent by the end of the year. If prices are rising across the economy, retailers have more leeway to charge more.