- Prior +1.7%
- HICP +2.9% vs +2.5% y/y expected
- Prior +1.6%
Headline annual inflation continues to run up as a result of surging energy prices and that is the case across every country at the moment. Of note, there is a sharp rise in the prices of unregulated energy products (+9.9%) and regulated energy products (+5.7%) as well.
When looking at core annual inflation though, that is seen slowing from 1.9% in March to 1.6% in April. So, that’s one bright spot for now. But as higher energy prices continue to be more sticky, expect that to have a more profound impact on core prices down the road. That especially if the Middle East conflict continues to drag on for longer.
In any case, the overall Eurozone reading here is the more pertinent report to focus on at this time.
