Inflation rate in the euro zone remains at 2.2 percent
Contrary to the expectation of economists, inflation in the euro zone does not fall further. The inflation rate remained at 2.2 percent in April, as the Statistikamt Eurostat in Luxembourg announced according to an initial estimate on Friday.
Already in the previous month, consumer prices had increased so much during the year. Economists had in April with a new decline in Inflation rate expected to 2.1 percent.
Inflation briefly about the target brand of the ECB
This means that inflation in the euro area remains just above the target brand of the European Central Bank (ECB). In the medium term, she is aiming for a rate of two percent.
Most recently, the ECB had lowered the key interest rates in mid -April for the seventh time since last summer. The deposit rate relevant to savers and banks is currently 2.25 percent. In June 2024 it was 4.0 percent. As a result, the savings interest rates have dropped sharply.
In April, the decline in energy prices continued, as Eurostat continues. These fell by 3.5 percent in the year. However, the prices for services increased more strongly than in the previous month.
Indexer increase comes on May 1st
The core control, in which prices for energy and food are deducted in susceptible fluctuation, laid 2.7 percent – after 2.4 percent in March. In the opinion of many economists, core inflation is better than the overall rate and plays an important role in the ECB’s monetary policy.
« Numbers are warning signal »
« Services are more expensive again in the euro zone and pull the core inflation up, » commented KfW economic expert Stephanie Schoenwald. The numbers are a « warning signal » because they showed that the price pressure for services remains stubborn. Together with the strong euro that makes imports cheaper, and the stresses from the customs conflict should still be enough to stabilize inflation in the medium term near the 2 percent goal of the ECB. « The door for another interest rate in June is open to the ECB. »
