5 May | Euro

European Union inflation holds above central bank's target level

European Union inflation holds above central bank's target level

Bloomberg reports that the eurozone inflation rate remained above the European Central Bank’s (ECB) target in April. 

Eurostat says the consumer price index rose 2.2% year-on-year last month. Economists surveyed by Bloomberg expected inflation to slow to 2.1%. The core index also exceeded analysts' forecasts, coming in at 2.7%. Additionally, price growth in the service sector accelerated in April due to the holidays, yet this effect is set to reverse this month, the news agency notes. 

ECB officials say disruptions in global trade caused by US President Donald Trump's tariff policies will affect prices in the eurozone. Slower GDP growth, cheaper energy, and a stronger euro are expected to tame inflationary pressures. Moreover, Bloomberg Economics estimates that an inflow of Chinese goods to the European Union could reduce prices in the region by 0.5–1.5%.

The German bank KfW forecasts consumer inflation to stabilize near the ECB’s target of 2% in the medium term. According to experts, this will also allow the regulator to cut interest rates at its June meeting.

Elena Dorokhina MarketCheese
Period: 14.07.2025 Expectation: 945 pips
Delayed tariff implementation may push silver to $35.650
Yesterday at 11:10 AM 40
Period: 18.07.2025 Expectation: 1400 pips
Weak dollar may drive S&P 500 to 6,300
Yesterday at 07:34 AM 39
Brent sell
Period: 11.07.2025 Expectation: 400 pips
Brent falls ahead of OPEC+ decisions
04 July 2025 63
Period: 18.07.2025 Expectation: 900 pips
AUDCAD is likely to keep pulling back from its monthly high
04 July 2025 49
Period: 10.07.2025 Expectation: 1200 pips
Selling USDJPY during rebound with 142.430 target
03 July 2025 64
Period: 11.07.2025 Expectation: 220 pips
Heatwaves across Europe and US support gas price recovery from recent lows
03 July 2025 245
Go to forecasts