Instead of moving toward economists’ expectations and the central bank’s goal, the Eurozone inflation’s rate in April remains unchanged from the previous month.
The statistics agency, Eurostat, announced the inflation rate of the Eurozone’s last month of 2.2%, the same as the rate in March. According to the Reuters’ survey, the economists expected the rate to drop to 2.1%, leaning toward the European Central Bank’s goal of 2%.
As for the core inflation, its rate in April increased from March’s 2.4% to 2.7%. Meanwhile, services inflation rose significantly compared to the other from 3.5% to 3.9%.
Franziska Palmas, economist from Capital Economics, cited this soar to the Easter timing effects but reassured that the decrease would happen in the coming month. She also stated this likely event would provide the ECB with an opportunity to further cut the interest rate.
Last month, the bank lowered the rate from 2.50% to 2.25%.
ECB President, Christine Lagarde, previously stated that the inflation rate is heading toward the 2025’s target. However, the stagnation of last month’s inflation rate seems to contradict it. Still, She and other lawmakers warned that the inflation’s direction in the medium-term remains unclear.
Nonetheless, the Eurozone’s GDP 2025 first quarter has performed better. Its growth rate has reached 0.4%, surpassing expectations and the previous quarter growth of 0.2% .
