Eurozone inflation exceeds expectations
Frankfurt, May 3 (Hibya) – Price pressures in the Eurozone exceeded expectations in April, creating new challenges for the downward trend in inflation and potentially complicating the European Central Bank’s (ECB) roadmap for further interest rate cuts in the coming months.
According to preliminary data released by Eurostat on Friday, consumer prices were unchanged from March but rose by 2.2% year-on-year – slightly above economists’ forecast of 2.1%.
On a monthly basis, inflation accelerated by 0.6%, similar to March, suggesting that the disinflationary momentum may be stalling.
More concerning for policymakers in Frankfurt was that core inflation – which excludes volatile food and energy prices – rose from 2.4% in March to 2.7% in April, well above the 2.5% consensus forecast.
This marked the first increase in core inflation since May 2024, with services once again leading the rise.
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