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Buyers buy fresh vegetables, fruits and herbs on the market outdoors under green striped sheds in Regensburg, Upper Typical, Bavaria, Germany, April 19, 2025.
Michael Nguyen/Nurfot via Getty Images
In April, eurozone inflation inflation was 2.2%unchanged, no expectations to move below, revealed data from the Eurostat Statistics Agency on Friday.
Economists interviewed by Reuters expected a 2.1% reading in April compared to March 2.2, as inflation softened up to 2% of the European Central Bank’s goal.
The main inflation that eliminates more volatile foods, energy, alcohol and tobacco has accelerated to 2.7% from March 2.4%. A fully viewed inflation service also rose, 3.9% compared to the previous 3.5% readings.
The euro was higher than the US dollar and the British pound after the data is released. The bond yield was little changed while yields on 10-year-old German Bonds continue to trade 3 basic points above.
Increasing the inflation of services is probably “due mainly to the effects of Easter terms,” - said in the recording of Francis Palmas, the elder economist in the capital economy. Next month, these effects are canceled, she added, believing that this left the door open to further reduce the interest rate from the European Central Bank.
“We believe that the services rate will decline significantly this year, as the US tariffs are weighed on activity, and the labor market continues to weaken,” Palms added.
Michael Field, the main strategist in Morningstar, meanwhile, called for caution, saying that tariff uncertainty meant that “any level of comfort we have here is unstable.” He said that further escalation of the tariff tension would mean inflation in Europe.
The field added that the further decrease in the ECB speed was still on the table. “This relatively low level of inflation maintains pressure from the ECB, which, in turn, can lower interest rates,” he said.
Last week, ECB President Christina Lagard said CNBC that “we head to our goal (inflation) during 2025, so the disinfection process is so much that we are approaching completion.”
Logard and other politicians Last week, it was warned that the inflation picture was less clear in the medium term, and factors such as potential opposition to Europe’s confrontation on tariffs in the US and financial shifts such as the main package of German infrastructure.
Lagarda said the ECB will “depend on the data to the extreme” when making decisions about the interest rate. Last month, the Central Bank reduced their interest rates, taking a key deposit-d 2.25% deposit, which is 4% compared to the maximum of 4% in mid-2013.
Several large economies of the Eurozone zone have previously published their latest inflation figures, which are coordinated for comparability throughout the block. Germany On Wednesday, they said that on Wednesday he expected that consumer prices increased by 2.2%in April, lower than the previous month, but slightly higher than expected. Over time French Harmonized inflation came by 0.8%, also slightly forward expectations.
Data published earlier this week show that Economy EURAZON zone It can pick up the couple, and the gross domestic product of the block increased by 0.4% in the first quarter of 2025, reports the previous reading. This was higher than the prognosis of 0.2%, and in the last quarter of 2024, a revised printing of 0.2%.
However, in the coming months, the growth will be slowed down from the global tariff.
