Euro Area Inflation Holds Steady at 2.2% in April

Annual inflation in the euro area remained stable at 2.2% in April 2025, according to data released by Eurostat, the European Union’s statistical office.

The figure matches the rate observed in March and is marginally lower than the 2.4% recorded in April 2024. Across the broader European Union, inflation declined to 2.4%, easing from 2.5% the previous month and down from 2.6% a year earlier.

Inflation Trends Across the EU

Inflation rates varied widely among the EU’s 27 member states. France recorded the lowest annual inflation at just 0.9%, followed by Cyprus (1.4%) and Denmark (1.5%). At the opposite end, Romania posted the highest inflation at 4.9%, with Estonia (4.4%) and Hungary (4.2%) close behind.

Compared to March 2025:

13 countries saw a decrease in their annual inflation rate
3 countries remained unchanged
11 countries recorded an increase

These variations reflect a combination of local economic dynamics, energy price developments, and domestic fiscal measures.

Key Drivers of Euro Area Inflation

A breakdown of the euro area’s inflation components shows that:

Services were the main driver, contributing +1.80 percentage points
Food, alcohol, and tobacco added +0.57 percentage points
Non-energy industrial goods contributed +0.15 percentage points
Energy exerted a negative influence, subtracting 0.35 percentage points from the overall rate

The strong contribution from the services sector suggests persistent demand in areas such as transport, hospitality, and healthcare. Meanwhile, the drag from energy prices reflects the ongoing stabilization of global oil and gas markets, which surged in previous years due to geopolitical tensions and supply constraints.

Policy Context and Outlook

The steady inflation rate aligns closely with the European Central Bank’s medium-term inflation target of 2%. The ECB recently began easing interest rates after a prolonged period of policy tightening. Officials have emphasized a data-dependent approach going forward, closely monitoring core inflation and wage trends.

With inflation gradually moderating and energy markets more stable, economic policymakers across the eurozone will continue balancing support for growth with inflation control. Markets will closely watch upcoming economic indicators, including GDP revisions and wage data, for further clues about the euro area’s monetary policy trajectory.

Source: Eurostat

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