• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Trending:
  • Kashmir
  • Elections
Monday, June 16, 2025

Daily Times

Your right to know

  • HOME
  • Latest
  • Pakistan
    • Balochistan
    • Gilgit Baltistan
    • Khyber Pakhtunkhwa
    • Punjab
    • Sindh
  • World
  • Editorials & Opinions
    • Editorials
    • Op-Eds
    • Commentary / Insight
    • Perspectives
    • Cartoons
    • Letters to the Editor
    • Featured
    • Blogs
      • Pakistan
      • World
      • Ramblings
      • Lifestyle
      • Culture
      • Sports
  • Business
  • Sports
  • Arts, Culture & Books
  • Lifestyle
  • E-PAPER
    • Lahore
    • Islamabad
    • Karachi

Eurozone inflation sees surprise rise after five months

Annual inflation in the eurozone rose to seven percent in April, the EU’s statistics agency said Tuesday, the first increase after five consecutive months of declines. Consumer prices edged up from 6.9 percent in March, which could further encourage the European Central Bank (ECB) to raise interest rates on Thursday. Analysts for FactSet and Bloomberg had predicted the rate would remain stable. The ECB has hiked rates repeatedly since July last year to rein in red-hot inflation, and analysts expect the Frankfurt-based institution to raise them again, though they are divided on how big the increase will be. Following Russia’s assault on Ukraine last year, energy prices soared and helped push consumer prices higher across the single currency area, hitting a peak of 10.6 percent in October. Inflation later fell thanks to a slowdown in the rate of energy price rises, but it still remains well above the ECB’s two-percent target. Food and drink prices keep climbing, putting pressure on European households, but the pace of the increase slowed to 13.6 percent in April after 15.5 percent in March, Eurostat said. Energy prices increased 2.5 percent after falling 0.9 percent in March. “The unexpected increase is the result of a bounce back in energy price inflation, after the strong negative base effect in March, and slightly higher service price inflation,” ING economist Carsten Brzeski said in a note. The eurozone’s core inflation, which excludes volatile food and energy prices, fell slightly to 5.6 percent in March from 5.7 percent a month earlier. “We expect headline inflation to continue falling, while core inflation will remain sticky,” Brzeski. Among the 20 countries that use the euro, Luxembourg had the lowest inflation rate, at 2.7 percent in April, Eurostat said. The data showed that inflation in Germany, the EU’s biggest economy, slipped to 7.6 percent in April from 7.8 percent a month earlier. But in France, consumer prices rose 6.9 percent last month after 6.7 percent in March, Eurostat said. Many economists say the ECB will opt for a rate increase of 50 basis points on Thursday — as it did at its previous three meetings — while others think it will downshift to 25 basis points. “Sticky inflation data clearly stresses the need to continue hiking but with last week’s weaker-than-expected GDP growth report and today’s weak loan growth and loan demand data, the case for slowing down the pace and size of rate hikes has become stronger,” said ING’s Brzeski, who expects a 25-basis-point increase. Capital Economics’ chief Europe economist, Andrew Kenningham, said the figures “do not decisively tip the balance ahead of Thursday’s ECB decision” but added that the ECB could “pull a hawkish surprise by going for a 50bp rather than 25bp hike”.

Filed Under: Business

Submit a Comment




Primary Sidebar




Latest News

Pakistan-made FIFA 2025 ball wins global praise for innovation and performance

Iran uses smart tactics to jam Israeli defense systems in latest strike

Carnival shooting near Salt Lake city leaves three dead, including infant

CM Maryam Nawaz offers free higher education to children of industrial and mine workers

Pakistan approves Rs 25 billion for key projects, focuses on energy, education, and digital growth

Pakistan

Pakistan-made FIFA 2025 ball wins global praise for innovation and performance

CM Maryam Nawaz offers free higher education to children of industrial and mine workers

Pakistan seals Iran border in Balochistan as regional tensions rise

PM forms high-level committee to safeguard oil supply amid rising middle East tensions

Balochistan set to unveil Rs1 trillion budget with major boost for education and development

More Posts from this Category

Business

Bitcoin giant praises Pakistan’s bold digital economy plans

KSE-100 surges over 650 points as investors regain confidence post-budget

Petrol, diesel prices surge after budget; govt adds new carbon levy

‘Pakistan aspires to lead Global South in adoption of digital assets’

US Fed set to hold rates steady in the face of Trump pressure

More Posts from this Category

World

Iran uses smart tactics to jam Israeli defense systems in latest strike

Carnival shooting near Salt Lake city leaves three dead, including infant

China responds to report on nuclear Arsenal growth with no comment

More Posts from this Category




Footer

Home
Lead Stories
Latest News
Editor’s Picks

Culture
Life & Style
Featured
Videos

Editorials
OP-EDS
Commentary
Advertise

Cartoons
Letters
Blogs
Privacy Policy

Contact
Company’s Financials
Investor Information
Terms & Conditions

Facebook
Twitter
Instagram
Youtube

© 2025 Daily Times. All rights reserved.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.OkPrivacy policy