Preliminary data published by Eurostat showed that eurozone annual inflation rose in April, recording the first acceleration in 6 months, while core inflation growth slowed slightly, retreating from record high.
According to the report, the consumer price index rose by 7% per year after an increase by 6.9% in March. Economists also expected an increase by 7%. Inflation is more than three times the ECB's 2% target, making another rate hike a necessity and leaving only its size up for debate, with ECB policymakers split between a 25 and a 50 basis point move. The ECB has raised interest rates by at least 50 basis points at each of its past six meetings.
Meanwhile, on a monthly basis, the consumer price index rose by 0.7% after rising 0.9% in March. This was the third price increase in a row.
Eurostat reported that the core consumer price index - energy, food, alcohol & tobacco - rose by 5.6% per year after an increase by 5.7% per year in March. Economists had expected the index to remain at 5.7%. The slowdown in growth was recorded for the first time since June 2022.
The data showed that the annual growth of the overall consumer price index was due to an increase in the cost of food, alcohol & tobacco (+13.6% compared with +15.5% in March), non-energy industrial goods (+6.2% vs. +6.6%), services (+5.2% vs. +5.1%). Meanwhile, energy prices rose by 2.5% per annum after declining by 0.9% per annum in March.