Overview

• Headline inflation in the eurozone remained at 2.2% in April, slightly above the European Central Bank's 2% target.
• Core inflation, which excludes volatile items like food and energy, rose to 2.7% from 2.4% in March, exceeding expectations.
• Services inflation accelerated to 3.9%, up from 3.5%, reflecting persistent domestic price pressures in the sector.
• Economists see an 80% likelihood of another ECB rate cut in June, despite hawkish calls to pause easing amid inflation concerns.
• Eurozone GDP grew by 0.4% in Q1 2025, surpassing forecasts, but global trade tensions are expected to weigh on future growth.