In April, Inflation in the Euro Zone Reached a Stable Point

In April, the inflation rate in the euro zone remained stable in line with analysts’ expectations, while the core inflation rate showed a slight slowdown.

Data released today, Tuesday, April 30, revealed that the consumer price index in the euro zone increased by approximately 2.4% this month, matching both analysts’ forecasts and March levels.

However, the core inflation rate, which excludes volatile components such as energy, food, tobacco, and alcohol, decelerated to 2.7% compared to 2.9% last month. Expectations had suggested a slightly lower reading of 2.6%.

In a separate report, economic growth data in the euro zone indicated GDP growth of around 0.3% in the first quarter of 2024, following a contraction of 0.1% in the final quarter of last year.

Among eurozone economies, Germany and France both saw GDP growth of approximately 0.2% each. Notably, the German economy had contracted by 0.5% in the last quarter of 2023.

Market sentiment suggests that the European Central Bank (ECB) may initiate interest rate cuts at the upcoming meeting scheduled for June 6. Current market expectations for a rate cut are around 70%.

Several ECB officials with voting rights shared with CNBC earlier this month that they anticipate interest rates to start declining in June. This move aims to mitigate the risks of an economic slowdown in the euro zone.