ZURICH (MaceNews) – Consumer prices in the Eurozone rose 7.5 percent in April from a year ago, according to a flash estimate from Eurostat, and were in line with expectations, although it appears inflation is broadening.
The overall pace of inflation in the Eurozone as measured by HICP rose from 7.4 percent year-over-year to 7.5 percent in April, meeting the median expectations in an Econoday survey of economists’ forecasts. As in previous months, prices were driven higher by energy prices which rose 38 percent in April from a year ago.
Perhaps more worrisome to policy-makers is that the narrow core measure topped 3 percent, rising 3.5 percent on an annual basis in April. In March, the measure excluding energy, food, alcohol, and tobacco registered a 2.9 percent gain. Excluding only energy items, consumer prices rose 4.2 percent in April from comparable year-ago levels, suggesting inflation is broadening in the economy.
Food, alcohol, and tobacco prices accelerated to a 6.4 percent rate in April from 5.0 percent the month before, while services prices rose by 3.3 percent during the reporting month, after a 2.7 percent gain the month before.
Similarly, prices for non-energy industrial goods rose by 3.8 percent from 3.4 percent in March, suggesting supply constraints are pressuring prices in the manufacturing sector.
Inflation by major economy in April compared to a year ago:
