National economy Inflation rate in the eurozone remains at 2.2 percent
Contrary to economists' expectations, inflation in the eurozone is not falling any further. The rate of inflation remained at 2.2 percent in April, according to an initial estimate released by the statistics office Eurostat on Friday.
02.05.2025, 12:53
SDA
Consumer prices had already risen this much in the previous month in a year-on-year comparison. Economists had expected the inflation rate to fall again to 2.1 percent in April.
Inflation just above the ECB's target
This means that inflation in the eurozone remains just above the European Central Bank's (ECB) target. It is aiming for a rate of two percent in the medium term.
The ECB last cut its key interest rates in mid-April for the seventh time since last summer. The deposit rate relevant for savers and banks currently stands at 2.25 percent. In June 2024, it was still 4.0 percent. As a result, savings interest rates have fallen sharply.
The decline in energy prices continued in April, as reported by Eurostat. These fell by 3.5 percent year-on-year. However, prices for services rose by 3.9 percent, more than in the previous month.
Core inflation, which excludes volatile prices for energy and food, rose to 2.7 percent - after 2.4 percent in March. According to many economists, core inflation provides a better picture of price trends than the overall rate and plays an important role in the ECB's monetary policy.
"Figures are a warning signal"
"In the eurozone, services are becoming more expensive again and are pulling core inflation upwards," commented KfW economic expert Stephanie Schoenwald. The figures are a "warning signal" because they show that the price pressure on services remains stubbornly high.
Together with the strong euro, which makes imports cheaper, and the burdens from the customs conflict, it should nevertheless be enough to stabilize inflation close to the ECB's 2% target in the medium term. "This leaves the door open for the ECB to cut interest rates again in June," said Schoenwald.
