The eurozone's annual inflation rate hit 2.4% in April, flat from March, raising hopes that the eurozone would cut interest rates before the end of the summer. The numbers were as expected.
Core inflation, which excludes volatile measures, reached 2.7% in April.
The latest reading is comparable to the previous year's inflation rate of 7%, according to the European Union's statistics agency Eurostat.
Services, food and tobacco were the biggest drivers of price increases, but energy markets also took heat as tensions continue to rise in the Middle East.
The lowest annual inflation rates were recorded in Lithuania (0.4%), Denmark (0.5%) and Finland (0.6%). The highest annual inflation rates were recorded in Romania (6.2%), Belgium (4.9%) and Croatia (4.7%). According to the data, compared to March 2024, annual inflation rates fell in 15 member states, remained unchanged in four and rose in eight.
Eurozone estimates released this week show that inflation is expected to fall faster this year than previously expected, as the shockwave from the Red Sea conflict has caused less damage to the region than previously thought. .
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The European Commission said it expects annual inflation to fall to 2.5% this year and reach the European Central Bank's target of 2% in the second half of 2025.
“We believe we have turned a corner,” said EU Economic Commissioner Paolo Gentiloni. “We expect growth to accelerate this year and further accelerate in 2025. Meanwhile, inflation will fall further and reach the ECB's target next year.”
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