Euro Area: Inflation at two-year high in April on surging energy prices

Euro Area Inflation April 2021

Euro Area: Inflation at two-year high in April on surging energy prices

Harmonized inflation came in at 1.6% in April, following March’s 1.3% and marking the highest print since April 2019. Inflation therefore moved closer to, but remained below, the European Central Bank’s target rate of near, but under, 2.0%. April’s result was due to sharper increases in prices for energy and non-energy industrial goods more than offsetting softer increases in prices for services and for food, alcohol and tobacco.

On a monthly basis, harmonized prices climbed 0.57% in April, following March’s 0.94% jump, which had marked the strongest rise in two years. Core inflation, which excludes volatile energy and unprocessed foods prices, softened to 0.8% from 1.0% in March.

Commenting on the short-term outlook for inflation, Bert Colijn, senior economist at ING, stated:

“Higher goods prices are also imminent as input shortages and supply chain pressures have caused import prices to jump recently. While businesses may absorb part of these higher costs in margins, it does seem logical that prices are set to rise further.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest X Download Fullscreen