BRUSSELS (AP) — Inflation across the 19-country eurozone pushed up to the European Central Bank's target in April as an improvement in the economy showed clear signs of driving up prices.
Statistics agency Eurostat said Friday that its headline rate rose to 1.9 percent over the year to April from 1.5 percent the previous month. The increase was a tad more than expected in financial markets and means that inflation is back at the ECB's target of just below 2 percent.
The main force behind the spike was a big rise in energy costs, which were 7.5 percent higher. A year ago, they had fallen 8.7 percent. The turnaround is due to the rise in oil prices, which has pushed up inflation across the eurozone, as well as other economies, over the past year.
The key development in Friday's release, however, was a rise in the core inflation rate, which strips out the volatile items of food, energy, alcohol and tobacco, to 1.2 percent from 0 .7 percent. That's important as it shows that inflation pressures may be building through such things as wages as the eurozone economy gains momentum.
On Thursday, ECB President Mario Draghi indicated his lack of confidence that inflation could stay at the ECB's target, and that pointed to the bank maintaining its stimulus efforts for a while yet. It will be interesting to hear what he says about the latest increase.
© Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.