FOREX TradingCharts.com

Financial News: Eurozone Economy Grows In Q1, Inflation Sets New

Eurozone Economy Grows In Q1, Inflation Sets New High

04/29/2022 - 12:36:00 (RTTNews)

(RTTNews) - Eurozone economy grew in the first quarter of the year, while inflation continued to accelerate to set a new record high, presenting a complicated outlook to the European Central Bank that is trying to end stimulus and start raising rates like peers.

Gross domestic product grew 0.2 percent from the fourth quarter of 2021, when the economy expanded 0.3 percent, preliminary estimates from Eurostat showed Friday. Economists had forecast 0.3 percent growth.

Earlier on Friday, official data revealed a 0.2 percent growth in Germany, stagnation in France, growth slowing to 0.3 percent in Spain, and output shrinking 0.2 percent in Italy.

On a year-on-year basis, Eurozone GDP increased 5.0 percent in the first quarter after a 4.7 percent increase in the previous three months. Economists had expected a 5.0 percent increase.

Separate data from Eurostat showed that consumer price inflation accelerated to 7.5 percent in April, a new record, from 7.4 percent in March. That was in line with economists' expectations.

Further, core inflation accelerated sharply to 3.5 percent from 2.9 percent in March. Economists had expected a rise to 3.2 percent.

"With supply chain problems set to last longer and become more severe again due to Chinese lockdowns and the war, expect core inflation to trend higher for most of 2022 at least," ING economist Bert Colijn said.

"This broadening of high inflation is a key concern for the ECB and adds to pressure to act quickly, despite the fact that this inflation continues to be rooted in supply-side issues beyond the control of the central bank."

Energy continued to have the highest annual rate, 38.0 percent in April versus 44.4 percent in March. Prices of food, alcohol & tobacco rose 6.4 percent after a 5.0 percent increase in March.

Non-energy industrial goods prices rose 3.8 percent after a 3.4 percent increase in March. Services costs grew 3.3 percent after a 2.7 percent rise the previous month.

Compared to the previous month, the consumer price index rose 0.6 percent and the core measure climbed 1.1 percent in April. Economists had forecast 1.8 percent and 0.9 percent increases, respectively.

Capital Economics expects the euro area economy to contract in the second quarter due to rising inflation and the impact of the war in Ukraine.

The fallout from the Ukraine war and surging energy prices is set to take an increasing toll on households' real incomes and consumer confidence and also make life difficult for the industrial sector, the research firm's economist Andrew Kenningham said.

"Manufacturers in Germany will take a bigger hit than those in other parts of the euro-zone, but the increase in energy prices will affect the entire region, as will the fall in export demand and business confidence," the economist added.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2022 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Philippine Central Bank Raises Key Interest Rate (02 hr(s), 45 min(s), 17 sec(s) ago)
(RTTNews) - The Philippine central bank increased its benchmark interest rate for the first time i ...Full Story»

U.S. Existing Home Sales Slump More Than Expected In April (02 hr(s), 46 min(s), 17 sec(s) ago)
(RTTNews) - Existing home sales showed a significant decrease in the month of April, according to ...Full Story»

Dutch Jobless Rate Falls Further (03 hr(s), 48 min(s), 17 sec(s) ago)
(RTTNews) - Dutch jobless rate decreased for the fourth successive month in April to remain its lo ...Full Story»

Eurozone Construction Output Remains Flat In March (04 hr(s), 16 min(s), 17 sec(s) ago)
(RTTNews) - Eurozone construction output showed no variations in March, after rising in the previo ...Full Story»

Philly Fed Index Indicates Notably Slower Growth In May (04 hr(s), 28 min(s), 17 sec(s) ago)
(RTTNews) - Growth in Philadelphia-area manufacturing activity showed a significant slowdown in th ...Full Story»

Eurozone Current Account Balance Turns To Deficit In March (04 hr(s), 41 min(s), 17 sec(s) ago)
(RTTNews) - Eurozone current account balance swung to a deficit in March from a surplus in the pre ...Full Story»

U.S. Weekly Jobless Claims Unexpectedly Rise To 218,000 (04 hr(s), 49 min(s), 17 sec(s) ago)
(RTTNews) - First-time claims for U.S. unemployment benefits unexpectedly increased in the week en ...Full Story»

Philly Fed Index Slumps Much More Than Expected In May (05 hr(s), 35 min(s), 17 sec(s) ago)
(RTTNews) - Growth in Philadelphia-area manufacturing activity showed a significant slowdown in th ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Philippine Central Bank Raises Key Interest Rate

05/19/2022 - 11:32 AM (RTTNews)
(RTTNews) - The Philippine central bank increased its benchmark interest rate for the first time i ...Full Story>>

U.S. Existing Home Sales Slump More Than Expected In April

05/19/2022 - 11:31 AM (RTTNews)
(RTTNews) - Existing home sales showed a significant decrease in the month of April, according to ...Full Story>>

Dutch Jobless Rate Falls Further

05/19/2022 - 10:29 AM (RTTNews)
(RTTNews) - Dutch jobless rate decreased for the fourth successive month in April to remain its lo ...Full Story>>

Eurozone Construction Output Remains Flat In March

05/19/2022 - 10:01 AM (RTTNews)
(RTTNews) - Eurozone construction output showed no variations in March, after rising in the previo ...Full Story>>

Philly Fed Index Indicates Notably Slower Growth In May

05/19/2022 - 09:49 AM (RTTNews)
(RTTNews) - Growth in Philadelphia-area manufacturing activity showed a significant slowdown in th ...Full Story>>

Do not sell my personal information

Copyright © 2022. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.