Summary
Eurozone inflation remained steady at 2.2% in April, exceeding economists’ expectations of a drop to 2.1%, which complicates the European Central Bank’s (ECB) decision on potential interest rate cuts in June. Core inflation rose to 2.7%, and services inflation increased to 3.9%, driven by Easter timing effects, but analysts believe this won’t hinder further cuts. Despite a better-than-expected 0.4% economic growth in Q1, the outlook has been affected by U.S. tariffs, leading to expectations of two or three rate cuts by year’s end.
