The annual inflation rate in the Euro Area was confirmed at 2.2% in April 2025, maintaining a level slightly above the European Central Bank’s (ECB) target midpoint of 2.0%.
Euro area inflation rate confirmed
This steady inflation rate reflects ongoing price pressures within the bloc, signaling that inflation remains a key focus for policymakers as they balance growth and price stability. The largest contributor to the annual inflation rate was the services sector, which added +1.80 percentage points (pp), underscoring continued demand-driven price increases in areas such as hospitality, transportation, and healthcare. Following services, food, alcohol, and tobacco accounted for +0.57 pp, reflecting persistent upward pressure from supply chain disruptions and commodity price fluctuations. Non-energy industrial goods contributed +0.15 pp, while energy prices notably subtracted -0.35 pp, reflecting a modest easing in energy costs after recent volatility.
Core inflation figures
Meanwhile, core inflation—which strips out the more volatile food and energy components and provides a clearer view of underlying price trends—rose to 2.7% in April, up from March’s three-year low of 2.4%. This increase suggests that inflationary pressures are becoming more entrenched in the economy, particularly in sectors sensitive to wages and rents, and poses a challenge for the ECB’s efforts to maintain price stability.
On a monthly basis, consumer prices rose by 0.6% in April, mirroring the increase seen in March. This steady month-on-month gain highlights persistent inflation momentum, despite tightening monetary policy measures and ongoing efforts to contain price rises across the Euro Area. Analysts will closely watch upcoming data releases to gauge whether this inflation trend will persist or begin to moderate in the coming months, which will be critical for the ECB’s future interest rate decisions and economic outlook.
