Inflation remained stable in April in the euro zone, with 2.2% for a year, despite an acceleration of the drop in energy prices, Eurostat announced on Friday. The underlying inflation, corrected by volatile energy and food prices, which refers to experts and the European Central Bank (ECB), has accelerated 2.7% in the annual sliding, after 2.4% in March, much less than expected.
FACTST and Bloomberg analysts were presenting an average increase in slightly less consumer prices, with 2.1% and more than 2.5% for the underlying indicator. Bad news came from services, whose prices increased 3.9% for a year in April, after 3.5% the previous month. Inflation in this sector with a high work content is very guarded by the ECB because it is strongly correlated with the evolution of wages. However, the monetary institution fears a vicious circle between the outbreak of wages and prices, which makes the fight against inflation more difficult.
The BCE interest rates fell 7 times for a year
In general, in the 20 countries that share the single currency, inflation has clearly calmed down from the record of 10.6% for a year reached in October 2022, in the context of an outbreak of energy tariffs linked to war in Ukraine. He approached the 2% objective mentioned in the European Central Bank (ECB), which guarantees the stability of prices. Since June 2024, this favorable development has allowed the institution based in Frankfurt to reduce its interest rates seven times, reverting a monetary adjustment cycle began two years before at Stem prices.
Inflation fell in September at its lowest level in three and a half years, 1.7% in the annual shift. But it has returned since October above 2%. The Vice President of the ECB, Luis de Guindos, said that he was entrusted on Monday in the continuation of the lowest inflation trajectory, despite the commercial tensions linked to the customs duties of US President Donald Trump.
Source: BFM TV
