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Consumer prices in the Euro area remained unchanged at 2.2 percent in April 2025, beating economists forecasts of 2.1 percent and remaining above European Central Bank target of 2.0 percent. Taking a look at the breakdown of the report, energy prices were -3.5 percent versus -1.0 percent the previous month, while services rose 3.9 percent in April versus 3.5 percent the month prior.
Core inflation rose to 2.7 percent in April from 2.4 percent the month prior, indicating underlying price pressures mainly in the service sector. Recent reading should be taken with caution as the environment is displaying significant volatility.
Inflation in the region should be closely monitored alongside tariff impacts with U.S. President Donald Trump. As of late, Trump administration announced sweeping tariffs including 20 percent duties on European goods. Those goods include but are not limited to steel, automobiles, and aluminum.
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https://www.ft.com/content/614a7882-edfb-4dd8-b6e3-fe238e390da4
Euro zone core inflation jump not seen preventing rate cut | Reuters
Ronald Francois
Ronald is a senior market strategist at Sigmanomics.com, bringing over a decade of hands-on experience in equity markets and three years of specialized expertise in options trading. Known for his sharp fundamental analysis and deep understanding of macroeconomic trends, Ronald provides readers with actionable insights that bridge the gap between institutional strategy and individual investor needs.
