Eurozone inflation remains unchanged in April
Eurozone inflation remained steady at 2.4% in April, in line with preliminary figures reported by Eurostat earlier in the month. While overall inflation didn’t move, core inflation, which excludes volatile food and energy prices, dropped from 2.9% in March to 2.7% in April, marking the ninth consecutive month of decline. Economists view core inflation as an indicator of whether price increases in areas like energy have spread throughout the economy. Given the confirmation of the inflation rate and the trend, Arbejdernes Landsbank Chief Economist Jeppe Juul Borre anticipates the European Central Bank (ECB) will likely cut interest rates at the meeting on June 6. Both Borre and Confederation of Danish Industry Chief Economist Allan Sørensen expect a rate reduction, with Sørensen suggesting the ECB will proceed cautiously, initially making small cuts and monitoring inflation trends before instituting further reductions.