Eurozone final inflation rises 0.6% MoM in April vs. 0.6% expected

Eurozone inflation arrives at 7.4% YoY in April, misses estimates.
Monthly HICP in the bloc rises by 0.6% in April.
EUR/USD is keeping its range around 1.0500 on the mixed Eurozone data.

Dhwani Mehta FXStreet

Eurozone’s Inflation rose 7.4% in April, on an annualized basis, according to Eurostat’s final reading of the Eurozone Harmonised Index of Consumer Prices (HICP) report for the month.

The reading disappointed expectations of 7.5% while against the 7.5% previous. Core figures rose by 3.5%, matching the 3.5% market estimates and 3.0% last (a downward revision).

The bloc’s HICP rose by 0.6% versus 0.6% expected and 2.4% booked in March while the core HICP numbers also came in at 1.0% versus 1.1% expected and 1.1% seen previously.

Key details (via Eurostat):

“The lowest annual rates were registered in France, Malta (both 5.4%) and Finland (5.8%). The highest annual rates were recorded in Estonia (19.1%), Lithuania (16.6%) and Czechia (13.2%). Compared with March, annual inflation fell in three Member States, remained stable in two and rose in twenty-two.”

In April, the highest contribution to the annual euro area inflation rate came from energy (+3.70 percentage points, pp), followed by services (+1.38 pp), food, alcohol & tobacco (+1.35 pp) and non-energy industrial goods (+1.02 pp).

FX implications:

EUR/USD is off the lows but preserves most of its intraday losses amid a broad-based US dollar rebound.

At the press time, the pair is trading at 1.0510, lower by 0.32% on the day. Hawkish comments from the ECB policymaker Oli Rehn seem to have saved the day for EUR bulls.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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