Brussels (dpa-AFX) – Eurozone inflation accelerated, as initially estimated to a two-year high in April, driven by higher energy prices, final data from Eurostat showed on Wednesday.
Inflation rose to 1.6 per cent in April from 1.3 per cent in March. The annual rate came in line with the flash estimate published on April 30. This was the highest rate since April 2019, when inflation was 1.7 per cent.
On a monthly basis, the harmonized index of consumer prices advanced 0.6 per cent in April, as estimated.
Meanwhile, core inflation that excludes energy, food, alcohol and tobacco, eased to 0.7 per cent from 0.9 per cent in the previous month. This was below the flash estimate of 0.8 per cent.
Among components of HICP, food, alcohol and tobacco prices grew at a slower pace of 0.6 per cent and the growth in services cost eased to 0.9 per cent from 1.3 per cent.
Meanwhile, energy price inflation surged to 10.4 per cent from 4.3 per cent and non-energy industrial goods prices rose 0.4 per cent, following a 0.3 per cent increase.
While euro-zone inflation is likely to keep rising this year, it is unlikely to reach the heights seen in the US, Jack Allen-Reynolds, an economist at Capital Economics, said. Headline inflation will average about 2.5 per cent in the second half of 2021 before dropping back next year.
