Financial News: Eurozone Inflation Rises As Expected In April

Eurozone Inflation Rises As Expected In April

(RTTNews) - Eurozone inflation rose slightly in April on food and non-energy industrial goods prices, while core inflation slowed marginally, flash data from Eurostat showed on Tuesday.

The harmonized inflation of consumer prices posted an annual growth of 7.0 percent in April, following a 6.9 percent rise in March. The rate came in line with economists' expectations.

Excluding energy, food, alcohol and tobacco prices, core inflation slowed slightly to 5.6 percent from 5.7 percent a month ago. The core rate was expected to remain unchanged at 5.7 percent.

Data showed that food, alcohol and tobacco prices registered 13.6 percent increase but slower than March's 15.5 percent rise.

Meanwhile, energy prices advanced 2.5 percent, reversing a 0.9 percent fall in March. Non-energy industrial goods prices grew 6.2 percent after rising 6.6 percent in the previous month.

Services cost moved up 5.2 percent, which was slower than the 5.1 percent increase in the preceding period.

On a monthly basis, the HICP gained 0.7 percent in April. Final data is due on May 17.

Data came ahead of the monetary policy announcement from the European Central Bank on May 4. At the March meeting, the <a href=https://www.rttnews.com/3350848/ecb-raises-rates-by-50-bps-on-high-inflation.aspx target=_blank >ECB</a> had increased the key refi rate by 50 basis points as inflation is forecast to remain high for too long.

"The only open question is whether the ECB will go for 25bp or 50bp," ING economist Carsten Brzeski said.

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