Euro zone inflation, April 2025

Euro zone inflation remained unchanged at 2.2% in April, surprising analysts who had expected a decrease, according to preliminary data from Eurostat released on Friday.

Economists surveyed by Reuters had anticipated a drop to 2.1% in April from March’s 2.2%, as inflation had been moving closer to the European Central Bank’s target of 2%.

Several key euro zone economies have already reported their latest inflation figures, which have been adjusted for comparability. Germany’s statistics office projected a 2.2% increase in consumer prices for April, slightly below the previous month’s figures but slightly higher than anticipated. Additionally, French harmonized inflation stood at 0.8%, surpassing expectations.

“We are on track to reach our inflation target by the end of 2025, indicating that the disinflationary trend is nearing completion,” stated ECB President Christine Lagarde in an interview with CNBC last week.

Lagarde and other policymakers have cautioned that the medium-term outlook for inflation is uncertain, with factors such as potential retaliatory measures against U.S. tariffs and fiscal changes like Germany’s infrastructure investments potentially impacting inflation levels.

The ECB has emphasized that future interest rate decisions will be heavily influenced by incoming data. The central bank recently reduced its key rate to 2.25% from a peak of 4% in mid-2023.

Recent data suggests that the euro zone economy is gaining momentum, with a preliminary reading showing a 0.4% growth in the first quarter of 2025, exceeding expectations of 0.2%. However, growth is expected to slow in the coming months due to the global trade tensions.

This article is developing, please stay tuned for updates.