The statistics office Eurostat estimates that consumer prices rose noticeably in April compared to the same month last year. As a result, inflation is higher than ever.
Inflation in the euro zone remains very high. In April, consumer prices rose by 7.4 percent compared to the same month last year, according to a second estimate by the statistics office Eurostat in Luxembourg on Wednesday.
An initial calculation had shown an even higher rate of 7.5 percent. Inflation is at the level of March and thus higher than ever before in the European currency area.
Inflation was again driven by a sharp increase in energy prices, which increased by 37.5 percent within a year. Food and beverages were 6.3 percent more expensive. Services and manufactured goods rose by 3.3 and 3.8 percent respectively.
ECB inflation target exceeded
Excluding energy, food and luxury goods, consumer prices rose by 3.5 percent after 3.0 percent in the previous month. Inflation in this definition, the so-called core inflation, is less susceptible to fluctuations and is regarded by many economists as a reliable measure of the inflation trend.
The medium-term inflation target of the European Central Bank (ECB) of two percent is still clearly exceeded. Interest rate expectations of the ECB have recently increased on the financial markets. The key interest rate is expected to rise by a total of one percentage point by the end of the year. The central bank is currently giving indications of a first rate hike in the summer. It is lagging behind other major central banks such as the US Federal Reserve or the Bank of England.