2023-05-02 13:38:42
There are two main reasons for the persistently high inflation: food and energy prices.
Inflation in the euro zone picked up again somewhat in April. Consumer prices increased by 7 percent compared to the same month last year, as the statistics office Eurostat announced on Tuesday. In March, the rate had fallen significantly: from 8.5 percent in February to 6.9 percent. Experts had expected an unchanged rate for April.
In contrast to general inflation, core inflation fell somewhat in April. For consumer prices excluding volatile energy and food prices, Eurostat reported a 5.6 percent year-on-year increase. In March, core inflation was 5.7 percent, the highest level in the currency area’s existence. According to economists, it gives a good impression of the basic inflation trend.
Supporting the overall inflation rate is energy prices, which rose 2.5 percent year-on-year after falling in March. Overall inflation is now being driven by significantly rising prices for food and beverages, as well as for services and industrial goods.
The price target of the European Central Bank of two percent in the medium term will again be clearly exceeded. The central bank is bracing itself against inflation with higher interest rates. Another interest rate hike is expected at the next ECB interest rate meeting on Thursday. (dpa)
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