In April, inflation in the eurozone showed no change, remaining at the 2.2% mark.
The mentioned flash data was published by the statistics agency Eurostat.
It is worth noting that economists interviewed by the media predicted that inflation in the eurozone would drop to 2.1% in April. This expectation was based on unequivocal confidence in the gradual return of the corresponding indicator to the European Central Bank’s target of 2%.
Core inflation, which does not take into account volatile prices for food, energy, alcohol, and tobacco, accelerated in April in the eurozone, reaching 2.7%. It is worth noting that in March this figure was 2.4%.
The closely-watched services inflation print also showed growth in the eurozone in April. Last month, the corresponding figure increased to 3.9%. In March, this reading was 3.5%.
After the mentioned data was published, the euro rose against the dollar and the pound sterling. Bond yields did not actually show any changes.
Franziska Palmas, senior Europe economist at Capital Economics, said in a note that the increase in services inflation was likely driven mainly by Easter timing effects. According to the expert, these effects would reverse in the coming month. It was also noted that this left the door open for further interest rate cuts from the European Central Bank.
Michael Field, chief equity strategist at Morningstar, urged caution. The expert noted that tariff uncertainty meant any level of comfort was precarious. Michael Field also said that a further escalation of tariff tensions would mean an acceleration of inflation in Europe.
European Central Bank President Christine Lagarde said last week during a conversation with media representatives that this financial institution is heading towards its inflation target in the course of 2025.
As we have reported earlier, Euro-Area Economic Growth Quickens.
