Prices in euro countries rose slightly more in April than in March. This is mainly due to the fact that gas, oil and other energy sources have become a bit more expensive than a month earlier. Food prices also continued to rise at a rapid pace.
Inflation for the euro zone was 7.0% year-on-year in April, European statistics agency Eurostat reported on the basis of provisional data. In March, everyday life for consumers became an average of 6.9% more expensive than a year earlier. The April figure was in line with economists’ expectations.
Food, tobacco
Energy became 2.5% more expensive on average after a 0.9% decline in March. Prices of food, alcohol and tobacco rose 13.6%, after a 15.5% increase the previous month.
Core inflation, which does not take into account volatility in energy, food, tobacco and alcohol prices, was 5.6 percent, according to Eurostat’s first estimate. This is slightly lower than March’s 5.7%. It is the first time since June last year that core inflation has slowed slightly. Economists had expected an unchanged figure.
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Earlier in the day, it was announced that inflation in the Netherlands increased slightly in April. Daily living was 5.2% more expensive that month than a year earlier, while it was still 4.4% in March. According to the European calculation method, Dutch inflation was 5.9%, up from 4.5% in March.
Interest rates go up
Since last year, the European Central Bank (ECB) has been trying to reduce inflation by raising interest rates, which makes borrowing more expensive. Central bankers will meet again on Thursday to discuss interest rates. Then it will become clear whether the slight cooling in core inflation will be enough to raise interest rates by a small step of a quarter of a percentage point or if the ECB will stick to a more decisive increase of half a percentage point.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
