Eurozone annual inflation climbs to 3 percent in April
Eurozone annual inflation rose to 3% in April, reversing the disinflation trend of recent months. The increase was driven mainly by energy and food prices, complicating the European Central Bank's calendar for further interest-rate cuts.
The European statistics office Eurostat said annual inflation in the eurozone hit 3% in April, above market expectations. The rate, which stood at 2.7% in March, moved higher for the first time in three months.
Within the components, energy prices rose 6.3% annually, while food and non-alcoholic drinks climbed 3.1%. Core inflation held mostly steady at 2.4%, indicating that headline pressure largely reflects the energy shock. German producer prices recorded their biggest jump in three years in the same month.
The data complicates monetary policy debate just as European Central Bank President Christine Lagarde has signalled possible further rate cuts for the summer of 2026. In bond markets, Germany's 10-year yield rose 5 basis points after the release.
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