Buyers buy fresh vegetables, fruits and herbs on the outdoor product market under the canopy with green stripes in Regensburg, Upper Palatinian, Bavaria, Germany, 19 April 2025.
Michael Nguyen/Nurphoto by Getty Images
Inflation of the euro area remained unchanged at the level of 2.2% in April, there is no expectations for lower traffic, Flash data from the Eurostat statistical agency showed on Friday.
Economists surveyed by Reuters expected that reading would take place in April at 2.1% compared to 2.2% of March, because inflation decreased to the goal of 2% of the Central Bank of the European Central Bank.
Basic inflation, which excludes more unstable food, energy, alcohol and tobacco prices, accelerated to 2.7% compared to 2.4% of March. A strictly observed printout of services inflation also rose again, reaching 3.9% compared to the previous reading of 3.5%.
The euro was higher in relation to the American dollar and the British pound after the data was issued. Little bond yields have not changed much, with performance 10-year-old German Bonds still trade about 3 base points.
The increase in the inflation of services was probably “driven mainly by Easter temporary effects,” said Franziska Palmas, senior European economist at Economics. She added that these effects would turn around in the coming month, suggesting that it left the door to further reduced interest rates from the European Central Bank.
“We believe that the service indicator will drop significantly for the rest of this year, because the American tariffs are burdened with activity and the labor market is still weakening,” added Palmas.
Meanwhile, Michael Field, the main capital strategist in Morningstar, called caution, saying that tariff uncertainty meant that “every level of comfort we have here is uncertain.” He said that further escalation of tariff tensions would mean the reception of inflation in Europe.
Field added that further cutting of EBC coefficients was still on the table. “This relatively low level of inflation of the header maintains pressure on the ECB, which in turn can lower interest rates even more,” he said.
President EBC Christine Lagarde told CNBC last week that “we are heading to our purpose (inflation) during 2025 that the disinflastic process is so well on the way that we are approaching the completion.”
Lagarde and other decision -makers Last week, he warned that the image of inflation was less clear in the medium period, with such factors as potential anti -European anti -European agents against US tariffs and fiscal changes, such as the main infrastructure package in Germany.
Lagarde said that the ECB would be “addicted to data” when making decisions regarding interest rates. The central bank recently lowered interest rates last month, bringing a key deposit resource rate-up to 2.25%, compared to the highest level of 4% in mid-2023.
Several main euro zone economies have already published their latest inflationary data this week, which are harmonized for comparability throughout the block. Germany The Statistics office said on Wednesday that he expected consumer prices to rise by 2.2% in April, below reading from the previous month, but slightly higher than expected. Meanwhile French Harmonized inflation reached 0.8%, also slightly next expectations.
Data published earlier this week indicate that EUROPLE Economy According to preliminary reading, it can collect steam, and the gross domestic product increases by 0.4% in the first quarter of 2025. It was higher than the 0.2% forecast and occurred after a changed 0.2% of growth print in the last quarter of 2024.
However, it is expected that the increase will slow down in the coming months due to global tariff precipitation.