Eurozone inflation unexpectedly climbed to 3% in April, driven by rising energy costs. First-quarter GDP growth was a modest 0.1%, with Germany performing better than France. This mixed economic picture presents challenges for the European Central Bank.
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Eurozone Headline Inflation Hits 3%
The HICP flash estimate shows headline inflation rising to 3% in April from 2.6% in March. Not surprisingly, higher energy prices were the main culprit, increasing.
The 0.1% GDP growth figure in the first quarter was disappointing but is less relevant. While the German GDP expansion surprised to the upside, the stagnation in France disappointed.
By Peter Vanden Houte, Chief Economist, Belgium, Luxembourg, Eurozone
