Preliminary statistics released on Tuesday showed an increase in inflation across the eurozone in April, with the rate continuing to run well above the European Central Bank’s 2% target.
The headline rate of inflation increased to 7% in April from 6.9% in March, according to Eurostat. Excluding food and energy, core inflation was 5.6% in April, down from 5.7% in March.
The most recent data arrives days before the ECB is expected to announce fresh monetary policy. There has been much speculation about whether the central bank will hike rates by 0.50% or 0.25%. The main rate set by the ECB is now 3%.
Inflation has remained above the ECB’s target of 2% despite the steady rises in interest rates. According to projections released by the International Monetary Fund (IMF) last week, headline inflation will not meet the European Central Bank’s target until 2025.
