THE inflation to Germany It has slowed to the lowest level of the last seven months, boosting the European Central Bank for further interest rates, amid uncertainty about US duties.
Consumer prices proceeded 2.2% compared to a year ago, from 2.3% in March, the Statistical Service said today (30.4.2025). This is just over the average estimate of 2.1%in Bloomberg survey. The cost of services in Germany has accelerated, but may have been influenced by Easter holidays that fall later this year. Inflation data follow numbers from France and Spain, which were presented faster than expected, although France’s measurement was the lowest since February 2021.
The figures expected to be announced on Friday (2.5.2025) are expected to show that eurozone prices rose 2.1% compared to April last year, slightly lower than the previous month and just above the ECB’s target for 2%. An underlying measurement that removes unstable elements such as energy is estimated to rise.
ECB policymakers sound optimistic about inflation lately and are preparing another interest rates in June after the seventh decrease in the current cycle this month. But they also point out the “excellent uncertainty”, mainly because of US President Donald Trump’s duties.
The euro area economy expanded more than expected in the first quarter. However, the progress of the gross domestic product by 0.4% – duplicates compared to the previous period – does not include the impact of Trump’s release day earlier this month.
Keeping in mind that contributions are almost certain to burden growth, investors invoice two or three more interest rates in 2025. Some economists see the possibility of even more, while Franklin Templeton said this week that the ECB could start thinking about an increase by the end.